Error: -69774: Couldn't bring the new Core Storage Logical Volume online

Hi,
I have a filevault encrypted drive (750GB).
I first noticed a problem when it prompted my for the FileVault passphrase (which I had stored in my keychain) and entering the correct passphrase resulted in the typical "error" response (the sideways "bouncing" entry field) asking me for the passphrase again.
So I get a list of the corestorage to get the UUID of the encrypted volume:
>diskutil corestorage list
CoreStorage logical volume groups (1 found)
|
+-- Logical Volume Group ********-****-****-****-************
    =========================================================
    Name:         750GB APPLE HDD
    Status:       Online
    Size:         749812400128 B (749.8 GB)
    Free Space:   0 B (0 B)
    |
    +-< Physical Volume ********-****-****-****-************
    |   ----------------------------------------------------
    |   Index:    0
    |   Disk:     disk2s2
    |   Status:   Online
    |   Size:     749812400128 B (749.8 GB)
    |
    +-> Logical Volume Family ********-****-****-****-************
        Encryption Status:       Locked
        Encryption Type:         AES-XTS
        Conversion Status:       Complete
        Conversion Direction:    -none-
        Has Encrypted Extents:   Yes
        Fully Secure:            Yes
        Passphrase Required:     Yes
        |
        +-> Logical Volume ********-****-****-****-************
            Disk:                  -none-
            Status:                Locked
            Size (Total):          749493624832 B (749.5 GB)
            Conversion Progress:   -none-
            Revertible:            No
            LV Name:               750GB APPLE HDD
            Content Hint:          Apple_HFS
Using command line I get the following response:
>diskutil corestorage unlockvolume UUID -stdinpassphrase
{UUID being the one of the last Logical Volume named "750GB APPLE HDD"}
Passphrase:
Started CoreStorage operation
Logical Volume successfully unlocked
Error: -69774: Couldn't bring the new Core Storage Logical Volume online
next I try:
>diskutil corestorage revert UUID -stdinpassphrase
Passphrase:
Started CoreStorage operation on disk3
Error: -69741: The target disk isn't eligible for reversion because it wasn't created by conversion or it is not part of a simple setup of exactly one logical and one physical volume
and then:
>diskutil corestorage unlockvolume UUID -stdinpassphrase
Passphrase:
Error beginning CoreStorage Logical Volume unlock: The target Core Storage volume is not locked (-69748)
looking at the kernel log I see the following interesting entries:
08.12.13 15:32:47,000 kernel[0]: CoreStorage: fsck_cs has finished for group "UUID" with status 0x00
08.12.13 15:32:47,000 kernel[0]: CoreStorageFamily::unlockVEKs() failed to unwrap the vek, status = e00002bc
08.12.13 15:33:10,000 kernel[0]: CoreStorageGroup::completeIORequest - error 0xe00002ca detected for LVG "750GB APPLE HDD" (UUID), pv UUID-of-Physical-Volume, near LV byte offset = 0.
08.12.13 15:34:51,000 kernel[0]: CoreStorageGroup::completeIORequest - error 0xe00002d9 detected for LVG "750GB APPLE HDD" (UUID), pv UUID-of-Physical-Volume, near LV byte offset = 0.
BTW: after a while I also hear a single clicking sound (head jumping back on drive) so I am not sure if it might be a physical disk failure.
Any ideas anyone?

Also, I've tried Terminal command: diskutil corestorage revert UUID -stdinpassphrase which returned "Error: -69854: A disk with a mount point is required"
Also, I've tried Terminal command: diskutil corestorage changeVolumePassword UUID -newpassphrase which returned "Error beginning CoreStorage Logical Volume unlock: The target Core Storage volume is not encrypted (-69755)"

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