0xc0000225 error after cloning windows 7 from one disk to another using dd

We have two hard disks. One is 80GB, most likely damaged/corrupt/failing. The second is 320GB. In the 80GB disk, we have Windows 7 enterprise installed. Since we would like to keep our application configurations, we first attempted to repair the 80GB (Startup repair, system restore, chkdsk, last good known configuration) with no success. Windows 7 flag shows at bootup and then it reboots.

We then decided to clone the content of the disk to another disk. The 80GB drive has two partitions. One 100MB, system reserved, and one 78GB. We created in gparted 2 partitions on the 320GB disk, one 100MB and the second 78GB. We then tried to dd each partition of the first drive to the second:

dd /dev/sda1 /dev/sdb1
dd /dev/sda2 /dev/sdb2

Both of those attempts failed immediately because dd complained about I/O error.

We then found we can ignore errors, so we ran:

dd /dev/sda1 /dev/sdb1 conv=sync,noerror
dd /dev/sda2 /dev/sdb2 conv=sync,noerror

Those commands worked. The second command which was for the 78GB partition took many hours and there were many ignored errors. Nevertheless, we mounted the new 78GB partition and everything was there. All the folders of Windows 7 in place, and we could view file content without problem from within our Linux environment. However when we tried to boot from the new hard drive, Windows Boot Manager threw this error on bootup:

Windows failed to start (and more text like this)
Status: 0xc0000225
Info: A required device isn't connected or can't be accessed

We tried startup repair on this new drive. Startup repair said it found problems with startup and fixed them. But when we tried booting again, same error. We attempted startup repair one more time with the same result though.

Did we do the cloning the wrong way? Or is it because the first disk had issues? Maybe we have to do another step to make the new disk bootable?