Usually there's a tool on the Windows desktop that facilitates the creation of recovery CDs, it will drive the cd burner program etc, prompt for extra blanks. Just read your documentation or visit your vendor's support page. Also, it's a good idea to test these discs before you wipe out that partition. If it were me, I would leave the recovery partition alone and shrink the windows partition instead.
You might consider using Clonezilla live CD http://clonezilla.org/clonezilla-live.php
To copy that "recovery" partition to DVD then safely remove the partition without worries.
If you want your windows 7 operational you must not touch that partition.
If you simply remove it then your windows 7 won't boot ....
If you remove it carefully you'll be unable to use the recovery tools afterwards.
You can't backup that partition in order to deport it for later use on CD.
You Have various choices :
I know this is a old post but I have seen Windows not let you shrink very much like you said. Can't shrink more than 97 MB. A lot of the time this is due to your system needing a defrag. Most often a defrag will fix this issue.
If you want to back up your HD, try Trinity Rescue Kit. It has features that will let you clone your hard drive even over a network or you can use any number of drive cloners to make a complete copy of your hard drive.
I hope this helps the next person who has this issue.