I got my computer back to work! I booted the Arch Linux .img file using another program, one that was suggested by the Arch team. This one worked will. Once I installed GRUB I booted to windows with no hassle.
Installing Arch as a partition is another story. I only set aside about 10GB for Arch, which apparently isn't enough. I installed hal and xorg, and all my hard space went away... no more space for anything else I would like to have. I was planning on running Arch Linux for my OCNix testing. I would download and build everything in the host Arch, then run OCNix itself as a Virtual Box guest. But nope, not enough space.
Oh well, at least I got my windows back!