Your host system is having a hardware problem. You'll need to have the failing hard disk ("Macintosh HD2", the lower hard disk in your Macmini) replaced.
Dec 16 14:46:46 prescott kernel[0]: disk1s2: I/O error.
Dec 16 14:47:20: --- last message repeated 1 time ---
Dec 16 14:47:20 prescott kernel[0]: disk1s2: I/O error.
Dec 16 14:47:50: --- last message repeated 1 time ---
/dev/disk1
Device Identifier: disk1
Device Node: /dev/disk1
Part Of Whole: disk1
Device / Media Name: Hitachi HTS725050A9A362 Media
Internal: Yes
Device Location: "Lower"
I recommend that you take a full backup of all the important stuff from that disk as soon as possible, then look into replacing the disk.
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Darius
Thank you Darius - Sadly I see you are right - HOWEVER the big question is how can I salvage this VM I tried to copy to another drive without success - is there anything I can do?
Praying
If I can't recover the VM can I gain access to the Hard drives of the VM to salvage a file or two?
I ran the disk utility it finds NO errors on the drive only issue comes when trying to do something to that file I can View package contents but I can't start the VM - PLease I am begging anyone for some guidance