inplace upgrade 2003 to 2008 32 bit

Hi all,

I am having trouble doing an in-place upgrade of a VM windows 2003 32 bit to Windows 2008 32 bit. All going well until the last step "Completing upgrade" until 52% then start rebooting and never comes up. If I go "Safe Mode" it stops on Windows\system32\drivers\CRCDISK.SYS  while trying to load the drivers. I have tried loads of options none of them worked. I would appreciate any help.

Kamran7446