I just upgraded to the latest release of Parallels 8 and the VM (Windows 7) goes into Startup Repair mode in an endless loop. In other words it doesn't repair at all. It looks like after going into advanced tools and trying System Restore, the latest Parallels Tools did something to the winsrv.dll, because every time I try to boot normally, I'm getting a BSOD with: STOP: C000007b {Bad Image} C:\windows\system32\winsrv.dll is corrupt or missing. How do I fix this? Need for work on Monday.
Has the VM ever booted since the installation of the recent update? If not I suggest you uninstall PD8 and reinstall using the prior version of the software. Then see if you can get past the BSOD. This would at least get you back up and running and pinpoint the problem to the latest update. If the machine has booted successfully at least once after you upgraded and Parallels tools was updated, this is not an option. In thiat case hopefully you have a copy of the VM from before as a backup.