System repair disc for a Windows 7 Operating system can be created using the Control Panel’s System and Security Option.
Click on the Start menu –> Control Panel
Click on the Back up your computer under System and Security section
Click on the Create a system repair disc link available on the left hand side.
This would display the following dialog box, insert a CD or DVD and click on the Create disc button
The system would start preparing the files.
If the disc is not already labeled then the following dialog box would be displayed followed System repair disc complete message.
Now using this disc, you can boot your computer and also use this disc to recover windows from a serious error.