Per Scott's post on my question, here is how to restore a site:
"If you go to Settings Menu > Preferences, look at the last setting "Saving creates a .vnu backup here". If you have that enabled, click the "here" link and it will open a directory where the VNU files are. Just copy that and overwrite the damaged VNU and you should be all set."
I had one of my sites show up as a Corrupted File after upgrading to VSD 7.0, and this work around did the trick. There were a couple of images lost, but easy enough to find and replace. I also found it took images and placed them in the file, but in the wrong place.
If you get an error when uploading that images are there but not found, a fix is:
Open all pages of the site one by one, when all are open hit Save. Then go to Edit, Remove Files, select all image files not in the Root folder and delete. Check pages for missing images, again I had a few missing after doing this but it was better than recreating the entire site again.