Plamen,
I could not find any backup or virus application on the computer. What I ended up doing was installing Acronis True Home 2011 and using bare metal backup. I tried to Run the VMware 6.0 and 5.5 convert to convert TIB file in to VM but that also did not work out. So, I decided to boot the VM with an Acronis ISO and ran a restore feature. I made sure my VM's virtual hard drive was 25 gb larger than the physical HD on the machine. I was able to restore the Backup on the VM and the PC is working fine.
Thank you for all your assistance.
Happy Holidays!!