Dual Boot [Win 7 and XP], Please help!

#1
I recently installed Windows 7 and its running very smoothly. However, when I start it up, in the boot manager, I had to choose between Windows 7 or Microsoft Windows XP or Microsoft Windows XP Setup. I have a netbook with little disk space so I deleted the Windows.old file to remove XP. Now I'm stuck with Windows 7 and Microsoft Windows XP Setup in the boot manager. The setup is corrupted, when I choose it it says: "Windows failed to Start. A recent hardware or software change might be the cause". Then it tells me to" run the Repair your computer from the windows Disk" Then it tells me:
file: \$LDR$

Status: 0xc000000f

Info: The selected entry could not be loaded because the aplication is missing or corrupt.

I tried to us EasyBCD to remove it but it doesn't show up. There and I chose Windows 7 as default so it doesn't have to go through the boot manager but it still does. Please help me remove the setup option.