Trying to keep the Explanation & Questions Simple. XP & Windows 7 Dual Boot

I have a dual boot system.

XP Home 32 bit Edition Service Pack 3 and Windows 7 Release Candidate 1 on a separate partition on the same hard drive. I also have a third NTFS partition but it is just storage for files and has no OS.

I installed EasyBCD on the XP Partition. The first thing I did with the program was change the boot order sequence so that XP Home booted first.

What I want to do is delete the boot sequence for Windows 7 RC1 ( Since it is expired) and also delete the OS itself by reformatting the partition.

From what I understand from the program the first thing i did was correct.

If I get this right, I can edit the boot menu and delete the files for Windows 7 so that Windows 7 won't show up in the boot order when I start my machine. I can still boot into XP home without having to fix the NTLDR file?

Then I reboot into XP and reformat the partition for Windows 7 deleting all the files for the OS at the same time leaving XP intact giving me more storage space on the deleted partition. Correct?
Check Disk Management flags
If XP is "system" then you can safely format W7 without affecting the boot, W7 installed its boot files on the XP drive.
You then have 2 choices

Keep the W7 bootmgr in control (even though you've removed the rest of the OS). That will enable you to continue using EasyBCD and dual-booting Linux in the future should you want to try. In this case, just delete the W7 entry from the BCD and XP will boot transparently via bootmgr.

Put the XP NTLDR MBR and PBR back in control of the boot, and resume a vanilla XP boot. You can do that with EasyBCD 2.0 > Bootloader Setup > Install XP boot loader

If W7 is "system", then you must sort out the boot manager before you can format the W7 partition.
EasyBCD > BCD Backup/repair > Change boot drive.
Point it to the XP partition when asked
Reboot and check that XP is now "system"
Proceed as before.