If I understand correctly, what you want to do is to combine two OSes in one hard disk and be able to multi-boot from that disc. This requires partition move if you don't want to reinstall one of the OSes. You can use 3rd party programs like BootIt™ Next Generation which can do all the copying/sliding/resizing/imaging and any other partition work you ever need, and it includes its own bootloader which can boot any OS. It also allows you to easily boot multiple OSes from a single partition.
As for an alternative solution, you can format one of the drives (let's say Drive D with Windows 7) and then reinstall that OS to Drive C for multi-booting. LifeHacker has a nice article explaining how to dual boot Windows 7 with XP.