Either format it, or delete the partition(s) and start again making them the the size that you want. You should be able to do this from the W7 DVD.
Or if you have a program on CD/DVD like Acronis you can boot with that and do it.
I hope you got supplied with all the drivers you need for the laptop?
Must admit I am curious if there is anything on the 29GB drive - seems a strange arrangement.