 This study will be an open label, randomized, dose-finding study. There will be three arms corresponding to three different IdB 1016 doses: 314 mg, 624 mg, and 942 mg tid. Each arm will have 15 patients diagnosed with chronic hepatitis C and will be stratified to five patients with fibrosis stage II periportal fibrosis, five patients with fibrosis stage III bridging fibrosis, and five patients with fibrosis stage IV compensated cirrhosis. The treatment duration will be 12 weeks. Patients will be followed for an additional 4 weeks after treatment cessation to assess residual effects of measured parameters. Patients will have clinic visits on Day -21 screening, Day 1 treatment initiation, Day 29, Day 57, Day 85 end of treatment, and Day 113 follow-up after washout. 