VMWare 0x0000007B

I have created a virtual machine using VMWare convertor (latest version) of a physical Server 2000 machine. When booting this image (using VMWare Workstation 7.0.1.227600)i get a blue screen with the information

0x0000007B(0xF6427848,0xC00000034,0x00000000,0x00000000)
INACCESSIBLE_BOOT_DEVICE

Now i have googled this and lots of people are stating it to do with SCSI drivers. When using the convertor i set the disk type to IDE, so it is not a SCSI disk.

I have tried the following

Adding VMWare SCSI Drivers (Through boot CD)
Ran CHKDSK
Rebuilt boot sector
Tried LKGC and All Safe Modes
Tried Adding Virtual SCSI CD Rom to see if that forced the drivers

I am running out of ideas and this really needs to be solved asap, i have attached the VMX file.

.encoding = "windows-1252"
config.version = "8"
virtualHW.version = "7"
memsize = "2668"
MemAllowAutoScaleDown = "FALSE"
displayName = "MICROSFDM"
guestOS = "win2000serv"
numvcpus = "2"
floppy0.present = "TRUE"
floppy0.autodetect = "TRUE"
floppy0.filename = "auto detect"
parallel0.present = "TRUE"
parallel0.fileType = "device"
parallel0.fileName = "auto-detect"
parallel0.autodetect = "TRUE"
parallel1.present = "TRUE"
parallel1.fileType = "device"
parallel1.fileName = "auto-detect"
parallel1.autodetect = "TRUE"
serial0.present = "TRUE"
serial0.fileType = "device"
serial0.fileName = "auto-detect"
serial0.autodetect = "TRUE"
serial1.present = "TRUE"
serial1.fileType = "device"
serial1.fileName = "auto-detect"
serial1.autodetect = "TRUE"
serial2.present = "TRUE"
serial2.fileType = "device"
serial2.fileName = "auto-detect"
serial2.autodetect = "TRUE"
usb.present = "TRUE"
ethernet0.present = "TRUE"
ethernet0.addressType = "generated"
ethernet0.connectionType = "bridged"
ethernet0.startConnected = "TRUE"
ethernet1.present = "TRUE"
ethernet1.addressType = "generated"
ethernet1.connectionType = "bridged"
ethernet1.startConnected = "TRUE"
ide0:0.present = "TRUE"
ide0:0.fileName = "MICROSFDM.vmdk"
ide0:1.present = "TRUE"
ide0:1.autodetect = "TRUE"
ide0:1.filename = "auto detect"
ide0:1.deviceType = "cdrom-raw"
mks.enable3d = "TRUE"
vmci0.present = "TRUE"
ehci.present = "TRUE"
annotation = ""
pciBridge0.present = "TRUE"
tools.upgrade.policy = "useGlobal"
pciBridge4.present = "TRUE"
pciBridge4.virtualDev = "pcieRootPort"
pciBridge5.present = "TRUE"
pciBridge5.virtualDev = "pcieRootPort"
pciBridge6.present = "TRUE"
pciBridge6.virtualDev = "pcieRootPort"
pciBridge7.present = "TRUE"
pciBridge7.virtualDev = "pcieRootPort"
extendedConfigFile = "MICROSFDM.vmxf"
virtualHW.productCompatibility = "hosted"
ethernet0.generatedAddress = "00:0c:29:e2:33:6b"
ethernet1.generatedAddress = "00:0c:29:e2:33:75"
uuid.location = "56 4d e3 7d d0 fb e1 c1-0a 6b 80 6d 0d e2 33 6b"
uuid.bios = "56 4d e3 7d d0 fb e1 c1-0a 6b 80 6d 0d e2 33 6b"
cleanShutdown = "TRUE"
replay.supported = "FALSE"
replay.filename = ""
ide0:0.redo = ""
pciBridge0.pciSlotNumber = "17"
pciBridge4.pciSlotNumber = "21"
pciBridge5.pciSlotNumber = "22"
pciBridge6.pciSlotNumber = "23"
pciBridge7.pciSlotNumber = "24"
usb.pciSlotNumber = "32"
ethernet0.pciSlotNumber = "33"
ethernet1.pciSlotNumber = "34"
ehci.pciSlotNumber = "35"
vmci0.pciSlotNumber = "36"
vmotion.checkpointFBSize = "67108864"
usb:0.present = "TRUE"
usb:1.present = "TRUE"
ethernet0.generatedAddressOffset = "0"
ethernet1.generatedAddressOffset = "10"
vmci0.id = "232928107"
usb:1.deviceType = "hub"
usb:0.deviceType = "mouse"
parallel1.startConnected = "FALSE"
parallel0.startConnected = "FALSE"
serial2.startConnected = "FALSE"
serial1.startConnected = "FALSE"
serial0.startConnected = "FALSE"
floppy0.startConnected = "FALSE"
scsi0.present = "TRUE"
scsi0.pciSlotNumber = "16"
tools.remindInstall = "TRUE"
scsi0:0.present = "FALSE"
ide1:0.present = "FALSE"

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