Fortunately it sounds like your windows drive files are still safe from what you described. First, before you try anything else, I'd like to recommend that you go ahead and try to save as much of your important data before preceding. Fortunately you can do this while you are in the live environment of Kali, or in the installed of Kali. Data like photos, documents, mp3s, etc. Stuff you don't want to lose just as a precaution. From there, you can try several methods to 'repair' your windows install. And hopefully its something simple like a fix in the file system that is preventing it from booting properly.
When you select boot to windows from grub, you should be able to F8 into safe mode.. You shouldn't need a windows setup disk. If you can get into safe mode, then things should be at the very least salvageable from there. Log into an account, Click the Start icon, Type: System Restore, Follow the System Restore wizard.
Now often times this procedure will not work.. Which it sounds like it might be your case from the missing operating system statement you mentioned. If the above doesn't do the trick you may have to do a little extra work. But I believe you will have to make a Installation DVD/USB (I prefer the USB method but DVD will more likely be more compatible). If you do take this route, follow this guide to take you through the rest of the steps:
http://windows7themes.net/missing-op...windows-7.html
If all else fails, you may have to bite the bullet and start fresh. (After backing up your data of course) Try following the instructions in this link about a quarter of the way: "Recovery from the startup screen (during system boot)"
http://h10025.www1.hp.com/ewfrf/wc/d...name=c01867418
I hope this solves your issues. Once you get everything back in working order you can re attempt to get kali back in working order as well.
Fact, Science and the Pursuit of Knowledge. Working to secure your networks from threats; Outside and Within.