I'm not sure what caused this problem, but I think it was Winclone. I am trying to get support on those forums but I'll post here too. After a backup with Winclone my Boot Camp partition was hidden. I originally hid it myself before the backup by naming it .Windows, but it still showed in the finder side bar and in /volumes. After the backup it was hidden using the HFS+ 'invisible' bit, meaning it could only be seen by using ls in terminal or by enabling hidden files in finder. When in this state parallels and boot camp still works. When I use the command 'SetFile -a "v" /volumes/.windows' the volume becomes visible, but parallels fails to boot with the blue stop screen 0000007F immediately after the windows screen loads. Rebooting into windows still works. If I restore the WinClone image the volume is hidden but parallels works again.