[Windows] Just a curious Windows 7 question

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http://ubuntuforums.org – I just repaired a computer with Win7 x64, using Ubuntu and gParted. The system's SYSTEM partition on the harddisk had some "bad magic" error (of course, computers run on magic) for NTFS or something, and i decided to just re-create SYSTEM as an empty partition, hoping that the windows recovery would recognize this and just refill it with whatever was in it before. As I was booting the system, i forgot to boot into the recovery CD and it just jumped straight into booting Windows 7... i had somehow fixed the issue. But now i'm wondering, what EXACTLY is the SYSTEM partition and what's (Hardware)