Okay resolved the problem.  It turns out it was the Intel Matrix Driver.  I opened device manager, uninstalled the Driver for the Hard drive (which was replaced.)  Power cycled the system, it came up and re-installed the driver automatically and VIOLA! it was all working.
XPS machine the HD went bad.  We did an image via the MS tools on windows 7.  Made the rescue disk. We installed the new HD, did the restore from image.  When trying to download the virus updates from Microsoft security essentials we found that Windows 7 is no longer genuine.  We tried the various Microsoft Fix-its for this issue.  Yet it still comes up. Is there anything we can do other then buy windows 7 and reinstall?
Restore from backup Windows 7 not genuine...?