It sounds like your dirstate file itself is corrupted, so you need to generate a new working tree and start there. There are a couple of things you could try, but step one is definitely
Backup the current work (a simple cp -a, or tarball would be sufficient)
The way I would do it is to create a new branch with:
cd ..
bzr branch project new_project
then copy over your changes
rsync --exclude .bzr project/ new_project
You may need to redo some stuff like renames, add, etc. But it should let you get back to work.
It sounds like your dirstate file itself is corrupted, so you need to generate a new working tree and start there. There are a couple of things you could try, but step one is definitely
Backup the current work (a simple cp -a, or tarball would be sufficient)
The way I would do it is to create a new branch with:
cd ..
bzr branch project new_project
then copy over your changes
rsync --exclude .bzr project/ new_project
You may need to redo some stuff like renames, add, etc. But it should let you get back to work.