Hello
I’ll try to give some answers.
1
First partition belongs to Win7 and it has nothing to do with Toshiba recovery image saved on HDD. This hidden partition is reserved for Toshiba recovery image. First partition should not be deleted. This small partition will be created before Windows installation starts. Leave it as it is.
Hidden partition should be there is you want to use HDD recovery installation but now when you have created recovery disc you can delete it and get more free space on HDD. If something goes wrong you can use created recovery disc for OS installation.
2
As I already wrote, when you have recovery disc you can do whatever you want but take care about this disc and place it on safe place.
3
Using created recovery disc you will have “factory settings” again and preinstalled OS as on the first day after purchase. If you want to have own OS installation you must use Microsoft installation disc.
If you have more questions you are welcome.