MPTech--I downloaded what I felt was the latest Belarc Advisor and got the latest updates before running the scan last week. It showed my version of Windows correctly. However, I run Win7 Professional 64-bit, not Ultimate.
So the results you got from Belarc would seem to be a bug.
Another way to test your version of Windows is to run winver from a command prompt.
I assume your signature line showing WinXP/98 dualboot refers to another PC.
Jim
WIN7 Ultimate SP1 64bit, IE 11, NTFS,
cable, MS Security Essentials, Windows 7 firewall