However, when I installed it and checked the protocol box, and then chose bridged connection on my VM I was able to connect to the internet again.I also turned on network sharing for the VMware virtual nics within Windows.
But be careful - I tried removing the VM Bridge Protocol only to find out I could not install it again.
After couple of minutes I got 'Set network connection' pop-up without clicking on anything, I selected Home network, it asked me what I would want to share - I checked/selected everything, It than came back with a password for the homegroup which I saved, in case i need it. BTW, I already had VMWARE bridge protocol on my Host's network adapter and my guest os had it on automatic - So I did not tweak anything there, but it did not fix my internet issue.
So I followed the repair route as somebody had sugested here This answer looked like it provided the simplest solution, so I tried this one first.
If your PC did not come with a Windows installation disc or if you no longer have your Windows setup media, you can use Easy Recovery Essentials for Windows instead.
Easy RE will automatically find and fix many problems, and can also be used to solve this problem with the directions below.
This error has been known to occur as a result of one of the following causes: The hard drive’s file system may become damaged because of disk write errors, power outages or virus attacks.