Ah yes there is the Recovery Partition. I really hate it when they put it at the end like that. It makes stuff like this a bit more difficult.
Ok so now that i know this let start over.
Make sure you are booted off the 500GB drive.
Then delete all the partitions on the 1Tb drive. Once that is done go ahead and open up Reflect again. Click on image this drive (500gb) and select the 1Tb as the destination drive.
Now for the partitions part. Make sure all partitions are deleted from the 1TB. if not select them and his the Delete existing partition. Now on the Source part at the top UNCHECK the box to the far left of the partitions. It should then uncheck all the partition boxes.
Now this is what you want to do. Click and drag the 350MB FAT32 part first from the top to the bottom. It should add that. Then do the same for your Windows part. Down on the bottom part click on it and then click on the Restored Partition properties on it. Now you have partition size and free space size. Make sure Free space is set to GB from the drop down box. Now delete what ever is in the box and then put in 10 so that it leaves 10 GB free and ok. now you should have your C drive to be like 920Gb or so. Now take the recovery and drag it to the end. Then click on that one and then click on restored partition properties. make the free space 0 so.
Now it should have a 350 MB FAT32, then a 920 or so GB C Drive, and then a 10GB recovery.
Then in finish and clone it.