Is by any chance your server is a DELL having PERC RAID... and most important, is your RAID config with BATTERY supported.? If yes, then what I am suspecting is that when the RAID was rebuilding and you had rebooted the host, the cache was flushed and was not written. Check here VMware KB: VMware ESX 4.0, Patch ESX400-200907401-BG: Updates vmklinux and vmkernel64
Regd .your client SBS vm, I suspect the vmdk is corrupted. We need to work on recovering it, unless if you have snapshots which would make it easier. Else, check if the RAID is rebuilded successfully, then clone the VM to another test vm and power on the test vm to confirm operation
Regd...
"A general system error occured: Error creating disk Invalid argument"
It is a command line syntax error. Post out the command you tried. Let me see if we can fix it.