ok, I tried re-imaging it again just like Mr. Ross said using the, "Procedure for recovering unused space on the 2010/2011 Classmate hard drive," and the, "How to Set Up Your 2011 Driver Station."
My steps: 1.a. Rename AUTOINSTALL.CMD to AUTOINSTALL.CMD.BAK
b. Rename DISKPARTSCRIPT.TXT to DISKPARTSCRIPT.TXT.BAK
2. Turn off netbook, plug USB Restoration Key
3. Turn on, pres F11 repeadetly when the "2GO" logo appears
4. A screen appears with the choices
"HDD

M-SanDisk pSSd 16GB
USB: USB DISK
USB: Generic- Multi Card
Network: Realtek Boot Agent"
5. I move and choose "USB: Generic- Multi Card" because that's what it says to do in, "How to Set Up Your 2011 Driver Station."
6. Screen shows the Windows 7 green loading bar, then it turns black.
7.Returns to log in screen.
8. I check the memory space- still the same as I left it.
9. Still confused because I don't understand
Any help is helpful. haha