The PGP OS bootloader is probably pointing to a specific partition on a specific volume, maybe even at a certain sector, I don't know exactly how it works, but however it is when the OS is imported into a VM the place for the bootloader to find the OS is not the same anymore, this is a configuration that has to be changed somewhere on the PGP bootloader.
You have to realize that the point of encryption is to make all these things difficult, most probably the information where the OS is is also encrypted, to make it difficult to someone to clone a PGP encrypted machine and try to brute force the clone in a lab, (inside a VM for instance).
Normally an OS should be transported unencrypted and then have encryption installed/applied on the VM.
Finally, if you used Parallels Transporter it probably didn't transport the drive encrypted, as the PGP encryption is a lower layer, and Parallels Transporter isn't copying bit by bit (the way an encrypted drive has to be transported), or else you wouldn't be seeing the files via Parallels Mounter.
Last edited: Apr 17, 2013