Like an idiot I turned on FireVault in my virtual machine it turned on and was fine until I restarted my virtual machine. Every time I turn on my virtual machine it brings me to the recovery partition in my virtual machine (Mac OS X Lion). I can't start my virtual machine now. Does anyone have any tips or ran into this issue?
Parallels doesn't work with FileVault 2 from Lion at all. You need to turn off it. As I remember DiskUtility can not do that, so you need to revert to previous snapshot if exists. Another way is to setup _new_ VM with Lion and connect there your virtual hard disk from original one.