Heat a Dutch oven over medium heat. Add bacon; cook 4 minutes or until crisp. Remove bacon from pan, reserving 1 tablespoon drippings in pan; set bacon aside.
. Place pearl onions in a microwave-safe dish. Cover dish with lid, and microwave at HIGH 3 minutes or until tender.
. Remove and discard giblets and neck from chicken. Trim excess fat. Remove skin, and cut chicken into quarters. Sprinkle chicken with 1/4 teaspoon salt and 1/4 teaspoon pepper.
. Add chicken and pearl onions to reserved drippings in pan, and cook 4 minutes on each side or until chicken is browned. Remove chicken from pan; keep warm.
. Add chopped onion to pan, and sauté 3 minutes or until translucent. Add mushrooms; sauté 3 minutes or until tender. Stir in garlic. Add broth, next 3 ingredients, and remaining 1/4 teaspoon pepper. Return chicken to pan, and bring to a boil. Cover, reduce heat, and simmer 25 minutes or until chicken is done. Remove chicken from pan, and keep warm.
. Combine cornstarch and water, stirring with a whisk until smooth. Add to broth mixture, stirring with a whisk. Bring to a boil; reduce heat, and simmer 2 minutes or until slightly thick, stirring constantly. Stir in reserved bacon and parsley.