I have been caught in a loop where I can't boot up Windows Server 2008.

When the OS starts to boot I am presented two options:

1. Launch Startup Repair (recommended)
2. Start Windows Normally

No matter what option is chosen I end up with a black screen stating "Windows is loading files..." which takes approx 15 minutes until "System Recovery" is started. I try to run the "Startup Repair" but it reports the following error:

Problem Event Name: StartupRepairOffline
Problem Signature 01: 0.0.0.0
Problem Signature 02: 0.0.0.0
Problem Signature 03: unknown
OS Version: 6.1.7600.2.0.0.256.1
Locale ID: 1033

Actually no matter what other options I would try in the System Recovery they would also report some kind of error.

Some other logging I have been able to extract:

Diagnosis and repair details:

Number of repair attempts: 1
Session details
System Disk =
Windows directory = 
AutoChk Run = 0
Number of root causes = 1

Test Performed:
Name: System disk test
Result: Completed successfully. Error code = 0x0

Root cause found: 
A hard disk could not be found. If a hard disk is installed, it is not responding.

So it is actually stating that Harddisk could not be found... which to me seems to be a bit contradictious since the System Recovery just loaded all files from the hard disk it now states it cannot find.

Any ideas on what other options I have?