Most likely ghost is not cloning the boot partition, separate from the working"C:" drive.
Also, the boot partition needs to be the active 1st partition.
You can fix by booting from the install dvd and choose the repair option and fix startup or fixboot from the cmd option.

Read somewhere in the symantec forum about "bootmgr" missing you could also try to split the image:
Ghost -split=2000

There is also an update for 2.5 to 2.5.1 via live update or the licensing portal.

Haven't tried any ghosting myself, been busy learning WinPE, using WAIK tools - ImageX, looking at WDS, etc. for the MS 70-680 exam.  Seems alot more complicated, but there seems to be many benefits in creating/maintaining images this way instead, plus it doesn't cost more $ for ghost licensing.

I did make sure i had run the Live Update on the ghost console before attempting the windows 7 imaging. Reading online people are pointing to using the install DVD to repair the installation but when you are ghosting 100's of pcs all without CD drives this could be a problem. I did ghost partition>partition instead of disk>disk and ghosted it to the primary partition.
what would the Ghost -split=2000 command do and how do i implement it?

Restoring to disk will take care of the active issue as well, at least it does with Acronis.  :)

When you are creating the image using the ghost.exe command add -split to your command line options for capturing the image:  It will split the ghost files to 2000 MB instead of the defaults.  Make sure you are capturing the entire disk too.  (ghost command line options: http://service1.symantec.com/support/on-technology.nsf/docid/1998082612540625)

Did you get any errors in live update?  see: http://www.symantec.com/connect/forums/gss-251-now-available-live-update-support-win7-and-2k8-r2