THE SOLUTION :
Since this error is often caused by a compressed hard drive, it is possible to fix it by disabling data compression. Here are the steps to uncheck the “Compress this drive to save space” option that’s currently applied to the hard disk.
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Boot from a Windows installation DVD (in my case Windows 7). Let it load. Choose your language.
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Click on “Repair your computer” in the bottom left corner of the window (DO NOT choose “Install Now”)
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Next select your Operating System in the list. DO NOT click “Next”. Instead click the “Load Drivers” button
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Click on “Load Drivers” button
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A pop up will open to select a driver. Instead use that windows to browse to the boot drive, C: (in my case here)
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Right click on the C: Drive and select “Properties” in the context menu.
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Go to “General” tab
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UNCHECK this option: “Compress this drive to save disk space” and hit “Apply” button
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You’ll get a confirmation window pop up. Make sure “Apply changes to Drive … subfolders and files” is checked off on this window and click “OK”.
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WAIT. Be Patient. If you try and reboot now the decompression will be interrupted and not complete. Once the window you have open starts responding again you can OK out of things and close out of the Recovery Console as the compression process completed.
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Restart your computer and enjoy your Bootcamp partition
This is what worked for me to fix the issue. It seems to be caused by compression of the OS by the Winclone service when making a backup and it doesn’t properly un-compress the files when restoring the backup so I had to do it manually using this method.
Please fix this. Thank you.