Hello Parallels User !
I will comment each of your action and please reply to this with even more detailed and clear explanation
I got it to work.
Repeat: I was able to take an image of a dead hard drive (obtained by dd with conv=noerror,sync and running overnight),
<--- PLease describe in more details above action, especially "obtained by dd with conv=noerror,sync and running overnight".
turn it into a .hdd directory, and do a repair install of windows into that.
<--- So after you have turned inti .hdd directory ( What does it mean ? Did you rename extension to .hdd or put this file to hdd directory ???). Also after you have done this did you start Virtual Machine and it worked or you started VM and it did not work ( then what error did you see ?) and you decided to use Repair function from Windows installation CD ?
Brief summary (I'm not at the machine in question right now):
1. Create a machine, normally, with a small (100 MB) full, uncompressed, plain hard drive.
<--- Why did you do this ? How did you do this ?
2. Go into the .hdd directory. There's an XML file that describes the disk image -- change the blocksize (two places, I think) and the cylinder count.
<--- Why did you change the blocksize,the cylinder count? How did you change the blocksize,the cylinder count ?
3. Replace the existing image with your hard drive image. Do not try to change the name (that gave me a corrupt file error).
Also please describe in details.
With a (now verified) dead hard drive image, in my case, the first attempt to install a repair image failed -- several files would not copy.
--->What did you do at this step ?
However, the resultant VM was able to run chkdsk on bootup. Lots and lots of errors got fixed.
<--- Did it start automatically ?
After that, a second repair install succeeded, and windows was able to re-install itself with only two more reboots needed.
<---- what means "a second repair install "?
A dead system, brought back to life. Go VM's!
Please describe did you have physical hard drive dying or system files were corrupted on your old system ?
Finally where did you get such idea and instructions ?
Please give configuration of your old PC...
(Total time of about 12 hours. This information should save you at least six

.
Your information will be extremely helpful on further improvement of Transporter features.
I will be glad to receive detailed letter from you on :
[email protected]
Or just post your answer here !