Well the problem is actually on Dell's part not yours and is rather easy to solve. Actually the recovery partiton is hidden so the old version of Data Safe is unable to detect it. Let's solve this problem niw:
1. Open MyComputer, Click on C: drive.
2. Open Program Files (x86)/Dell DataSafe Local Backup/Components/DSUpdate
3. Click DSUpdate (an .exe file shown as type "Application") (You must be connected to internet)
4. It will update from version 9.4.40 to 9.4.4x (where x > 0)
5. It did something with the partition.
6. It will tell you to "reboot". Restart the laptop.
7. Then launch Dell DataSafe Local Backup.
8. This new version will detect the partition and enable you to make recovery discs.
9. You will need two DVD's and it will take approx one hour to create the recovery discs.