I just wanted to check that the solution the OP was to try: install latest Bitcoin Core (now 0.14.1) and then run the "abandon transaction" command to get rid of the phantom transaction and restore the BTC that did not get sent - worked for him.
You don't need to run that command now, just right click the transaction in question and choose the "Abandon transaction" option.
And just to be sure since I haven't upgraded in years - to upgrade to the new Bitcoin Core on my Windows 7 machine I just run the installer downloaded from bitcoin.org?
Yes. You may need to start Bitcoin Core with
-upgradewallet however in order to make sure that everything works.
P.S. I split your question into its own thread. Please do not hijack someone else's thread with your own questions and issues even if you think the problem is the same.