After getting over the ridiculousness of the issue I began researching how to resolve the problem. I ran into a few hints in BOL and then other hints on the Internet. After all the research, I determined the best issue would be to use the DBCC CHECKDB with the REPAIR_ALLOW_DATA_LOSS option. BOL stated this option could repair a transaction log. Well what could be more broken about a transaction log than not having one at all?
Once I determined I would go down this path the first problem was that the db would not go online, not even in emergency mode. So what I did was stop the SQL Server service and then I renamed the MDF file. Let's say the database name was DbLive and I renamed the MDF from DbLive.mdf to DbBad.mdf. I then started the SQL Server service and created a new DbLive db with a corresponding DbLive_log.ldf file. I then stopped the SQL service again and deleted the DbLive.mdf file. I then renamed DbBad.mdf back to DbLive.mdf. I then started the SQL service again.
You can imagine that these steps didn't fix the problem. The db did not come on line, but at least the db now had a transaction log, albeit one from a different database. But as far as SQL server was concerned the log was there now. It was just in a jacked-up state (yes that is a technical term).
The next thing I did was run ALTER DATABASE DbLive SET EMERGENCY. This put the db in emergency mode and allowed SQL server to work with the db at an emergency level. Next I ran "sp_dboption 'DbLive', 'single user', 'true' ". This set the db to single user mode preparing it for the DBCC that I would run next. Finally I ran "DBCC CHECKDB ('DbLive', REPAIR_ALLOW_DATA_LOSS)". After about an hour the db was ONLINE!
/*
Stop SQL service, rename DbLive.mdf to DbBad.mdf.
started SQL service, created fake DbLive db (with log etc)
Stopped SQL service
Deleted DbLIve.mdf
Renamed DbBad.MDF to DbLive.MDF
Started SQL service.
Ran following script:
*/
ALTER DATABASE DbLive SET EMERGENCY
sp_dboption 'DbLive', 'single user', 'true'
DBCC CHECKDB ('DbLive', REPAIR_ALLOW_DATA_LOSS)
sp_dboption 'DbLive', 'single user', 'false'
