reminds me, is there any reason to keep the recovery partition, i would like to put Win7 back on it??
Use Boot Camp Assistant to create a new partition, then install Windows. The Recovery HD and Bootcamp partitions aren't mutually exclusive. The Bootcamp partition will be positioned following the Recovery HD partition. I haven't gone through this process with ML, though I'm fairly confident it would work as Lion did, even after hearing your experience. I wish I could try it, but I have a MBP and Bootcamp is restricted to the internal drive. Much as I'd like to help by verifying the process, it would require many hours of down time for my only machine.
The Recovery HD partition space comes out of the Lion/ML partition, leaving subsequent partitions starting block the same.
As I mentioned previously, the creation of the Recovery HD partition didn't affect my existing BC partition. However, I haven't tried with ML, yet, other than upgrading my existing Lion partition.
I did a lot of experiments when Lion first came out to determine when and where Recovery HD partitions are created. Whether doing an upgrade or clean install, the Recovery HD partition would be created and always follows the Lion partition (block wise). It is also created when using Disk Utility Restore to image a Lion partition to another drive's partition. So, all and all, using the installer or Disk Utility automatically takes care of the Recovery HD for you.
There really isn't any reason to get rid of Recovery HD - it's only 650MB, and can be handy for running Disk Utility for First Aid or imaging the boot partition using Restore (which I've been using for years to create my bootable backups).
Speaking of backup images, I highly recommend Winclone to create and restore images of Bootcamp Windows installs.