Think if windows made a 'system image', it didn't include your D drive.
Windows system image default will save the boot & windows drives along with the partition tables for them.
Wise to restore them booting from the System Repair Disc it suggests you make ... or the repair option on a Windows7 dvd install disc.
I am pretty sure that I made a system image of both the C and D drives.
So if I wipe the HDD the partitions with free space will automatically be created by the Windows System Image disk coupled with the Repair Disk? What happens if I put in a larger HDD. Will it still create the same partitions with free space automatically?
I don't intend to do this now at all. This is 'just in case' something like this happens in the future and I am unable to do a system restore without using the system image disk.
If you need (and at some time most people do) to rely on recovery from an image I would strongly recommend Acronis True Image. You can get full trial download, it is not expensive and IMHO is the most comprehensive and reliable imaging system: