Well, I ran into another problem after I did upgrade to windows 7 home premium: I needed more space to on the second partition of the 100gb hdd to accommodate all the updates needed for the os to run smoothly. I also installed visual studio 2010 on it which really takes a lot of hard disk space.
The first partition (which contained windows server 2008 hpc edition) had some extra space. So i needed to move some space about 10 gb from this partition to w7 partition. I researched for partition software and i came accross easeus. EaseUS helped a great deal to move about 10gb from first partition to the second. Now I have enough space in w7 to accommodate all windows updates (specially visual studio sp1) and workspace for normal functioning of the os.