I would like to install Ubuntu via WUBI inside win7, but I don't know if it interferes with the HP recovery partition, I know it doesn't create a partition, but it does write to the MBR (which contains the ability to press F11 for system recovery), I'm not sure if WUBI makes a backup of the original MBR, then writes its own for the boot menu which might remove the F11 functionality, but when WUBI along with Ubuntu is later uninstalled, I don't know if WUBI reverts the MBR to its original state or if WUBI has a default MBR and writes that instead of restoring the original MBR.

I've always used Ubuntu as a native OS on my older machine, but this machine (quad core, 8GB, 1TB HDD) is brand new running win7, and still under warranty, and thus if anything goes wrong, and I have to send it back for repair, I would still like to have the HP recovery partition and the ability of pressing F11, intact, hence using WUBI.

Simple answer is don't use Wubi - it was always a kludge anyway.
The F11 function is vendor specific, and I've never looked at HP, so I'd suggest you leave the MBR (and following sectors importantly) alone. Install Ubuntu as a multi-boot, and update the Win7 loader (EasyBCD, a freebie, is very good for this) to include an option for Ubuntu.
Grub2 will complain if installed into a partition boot sector record, but works fine.

I've installed Wubi and uninstalled it, though not on HP. It did not seem to interfere with any of my existing partitions.

I would not go so far as to say Wubi is a kludge. I used it for almost a year, including a dist-upgrade, with no problems. I was even able to put Fluxbox on it and it ran quite smoothly.

I ditched it when I worked up the nerve to try my first dual boot with Windows and Mint, on which I am watching an episode of 77 Sunset Strip as I type this. (I had previously dual booted Linux distros, but it was the first time I actually dynamically resized a partition. Smooth as silk.)

Some people love it and others hate it.

I would not use it. A brand new system usually can run a vm just fine. It is the safest way to run a linux distro. I don't even bother to dual boot anymore. Either some os or the other or a vm solution.

I do like to use dual boot, mainly because when a Linux distro is run from a VM, I have to allocate at least 1GB ram, (for better performance), allocate gfx memory (to a max of 128MB when using VBox, VMware auto allocates gfx memory), but when run native, all resources are available for Linux to use, without having to draw from the host system.

I know my system can handle 5 VM's running simultaneously, each with a 1GB memory allocation, but that's not the point, the more resources used from the host, the more Windows slows down.

I am dual booting because I want Windows available with full functionality (which means not a VM) but I don't want to have to run Windows in order to use Linux on that computer, nor do I want to mess with Windows 7 in a VM. BTDT been around that learning curve.

Different strokes for different folks.

I guess I would say, on Wubi, that, if you want to give it a whirl, go for it and decide for yourself whether you like it. If you don't, remove it.