From the converter log:
--2008-03-13 10:11:51.649 'P2V' 3676 error --sysprepVersionWin32,74 Invalid sysprep files. Reason: Sysprep version 5.2.3790.1830 (srv03_sp1_rtm.050324-1447) is not compatible with guest os version 5.1
I beg to differ.
Can anyone from VMware comment?