The purpose of this study is to assess antiviral activity when administered alone for 3 days or in combination with peginterferon and ribavirin for 12 weeks. This study will also evaluate the safety and tolerability of treatment with VCH-222 when given alone or in combination with peginterferon and ribavirin.

The study will also evaluate the pharmacokinetic profile of VCH-222 in HCV infected subjects.

Inclusion Criteria:

• Male and Female subjects, 18-65 years of age (females non-child bearing potential in Part B)
• Have laboratory evidence of HCV infection for 6 months, defined by (1) presence of anti-HCV antibody (Genotype 1a and 1b infection), or (2)documented HCV RNA presence by a sensitive and specific assay and (3 histologic evidence of CHC (Fibrosis on a standardized histological grading system)
• Plasma HCV RNA of 100,000 IU/ml
• HIV 1 and HIV2 ab seronegative
• Body Mass Index (BMI) ≤ 35 kg/m2 BMI
• Treatment Naive subjects

Exclusion Criteria:

• Contraindications to peginterferon or ribavirin therapy
• Have evidence of liver cirrhosis, decompensated liver disease, and Child-Pugh score > 5
• Have hemoglobinopathies, unstable cardiac disease, history of organ transplant, active malignant disease or uncontrolled Type I or II diabetes