Sagar,
I'm a little surprised your Windows 7 machine failed to boot after converting it to a dynamic disk. A Windows 7 install can boot from a dynamic disk as long as it was installed while on a basic disk. So in your case, there must have been something else in the process that caused your machine to fail booting. As for any tools to covert it back to basic, I haven't used any that retained the data on the disk. The program you mentioned, Partition Wizard, says it can but I haven't used it before. Before using any tools, it may be a good idea to slave your hard drive into another PC and take an image of it just in case the conversion back to basic goes south. Let me know how it goes.
nate
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