OK so the MBR and GPT agree with each other, which is good news. You should just be able to resize again in Windows and tell it to use all of that partition's space, to revert back to what you had. The safest things to do, in order:
1. Do nothing. Live with the loss of a 118GB or whatever it is.
2. Resize the Windows volume from within Windows to recapture that 118GB for Windows.
3. Get something like iPartition. But I'd be very careful about handing it your drive in the current condition because it's not standard. I would see if iPartition supports dealing with your situation before using it. That situation is, the NTFS file system (the Windows volume) is smaller than the partition that defines it.
3. This might work, I haven't tried it. If you go to Disk Utility and reformat that Windows volume as FAT32 (MSDOS), it's possible Boot Camp will then let you recover the resulting unused space on the former Windows partition.
4. Start from scratch. Boot from a Lion DVD, repartition for 1 partition, reinstall Lion. Reinstall updates. Reinstall apps. Restore your backup. Boot Camp* to resize the Mac volume to what you really want. Reinstall Windows, reinstall its updates, reinstall it's apps, restore your data. Very tedious, will take a long time, but it's safer than what comes next.
5. Use command line tools: gdisk to remove the Windows partition, and diskutil mergepartitions to reclaim that free space for Mac OS.
* I would only use Boot Camp if you have some very specific requirement to natively boot Windows. Otherwise use a virtual machine to run Windows in. It's vastly more flexible and easier to recover from.