VMware Converter Standalone
VMware converter is used for migrating Physical servers to Virtual Machines, Virtual Machines to Virtual Machines.
Directions for conducting a V2V or P2V for Windows Servers
   1. Update or Open a tracking ticket to track progress
   2. Ensure system is documented and monitored on portal
   3. Notify stakeholders via DL – setup DL if needed
   4. Login to the Machine to be converted
   5. Run defrag and diskcheck if possible
   6. Run Microsoft Update
   7. Do a reboot test to ensure machine stability
   8. Download VMware Converter Standalone version 4 – VMware-converter-4.0.0-146302.exe
   9. Download Sysprep tools – unzip but do not run
  10. Download NewSID – unzip but do not run
  11. Download and run BGinfo – apply
  12. Download and run treesize free and clean up unneeded files
  13. Install VMware Converter
  14. Copy Sysprep files to correct location – c:\documents and settings\all users
  15. Launch VMware Converter
  16. Import Machine
  17. Select the device type; Physical Computer, Virtual Computer from ESX or VMware Workstation.
  18. Enter in the remote IP address of the target:
  19. Do not select Automatically uninstall the files when the import is successful
  20. Select all the drives you wish to migrate to the new Virtual Machine
  21. Select ESX or Virtual Center
  22. Enter the Virtual Center and user credentials
  23. Select the Virtual Machine name
  24. Select the ESX host
  25. Select the appropriate DataStore
  26. Select the appropriate network
  27. Check the box install vmware tools
  28. If you desire to customize the settings, check the box.
  29. Select Finish
  30. When completed test new machine and configure.
  31. Run newsid if new host names is needed… Keep in mind you cannot have two machines with same name or IP on same network.
  32. Run BGinfo and apply again.
  33. Verify reboot test and monitoring is functioning.
  34. Verify system time.
  35. Adjust services as needed.
  36. Remove old hardware’s software.
  37. Notify stakeholders when old machine is off and new machine is on. 
See also: http://communities.vmware.com/thread/129871