Can this ISO image if burned be used yo reinstall windows from scratch... like deleting partitions and booting on startup and allthat or is this just a recovery DVD for just reinstalling from the desktop or something.... the link to the file is here... lemme know...

http://neosmart.net/blog/2008/windows-vist.../#comment-91161

No. It is just an emergency boot disk to help you get into Windows if your install gets corrupted. It is not a complete operating system.