Unable to access Hard Disk 1

I was trying to turn off the monitor of the mac, but accidentally held down the button too long and the Mac went off with Parallels running Windows 7. When I turned it back on, the windows startup failed and I keep getting this error. Windows attempts to perform startup repair, which ultimately ends with another Unable to access... popup on the Mac side and windows responds "Startup Repair cannot repair this computer automatically."

I have tried a few different suggestions from other related posts; they have been unsuccessful.
I tried verifying the drive; there are no errors.
I have tried copying and pasting the .pvm file, but it errors out after about 10GB, saying that it is corrupted or in use.
I tried manually editing the configuration file.
I do not believe the hard drive is actually bad.

Running Parallels Desktop 5 on OSX. Let me know what other info you need. Report #16851663.
Kernel log attached.