This is a Phase 2, multi-center, randomized, open-label study to evaluate the safety, tolerability, and efficacy of Albuferon in subjects with hepatitis C (HEP C) who failed to respond to previous interferon alfa therapy.

Major Inclusion Criteria:

• Have a clinical diagnosis of chronic HEP C established on the basis of detectable viral load, as measured by a serum HCV RNA test during the screening period.
• Have previously failed to respond to treatment with any interferon alfa (IFNa) product
• Have compensated liver disease with the following minimum criteria: white blood cell count > 3,000/mm3, absolute neutrophil count (ANC) > 2,000/mm3, platelets > 125,000/mm3, and hemoglobin (Hb) > 13 g/dL for males or > 12 g/dL for females.

Major Exclusion Criteria:

• Evidence of decompensated cirrhosis or portal hypertension.
• Pregnant or lactating female.
• History of any other medical disease or condition that would make the subject (in the opinion of the investigator) unsuitable for the study.
• A current drug or alcohol addiction