Got problem with Backupexec 12.5 Vmware agent working with Vmware converter to restore backup.

ESX 3.5U4,VC2.5U5, Converter 3.02u1

VCB and Backupexec sitting on physical server (w2k3) while VC is sitting on vm (w2k3). 500GB free space on the destination LUN.

Temp folder of VCB server is G drive. C drive only has 4GB free space ( I don't dare to try to use C as temp folder).

Backup is successfully without issue.

Restore to temp folder on the VCB server is fine.

Restore to VC (with Add to inventory ticked), failed.

Error log:

11 2009-08-18 14:57:16.218 'managedVMCreator.CreateVM' 8424 info Authenticating user domain\svc_backupexec
11 2009-08-18 14:57:16.452 'managedVMCreator.CreateVM' 8424 info Logged in!
11 2009-08-18 14:57:18.578 'App' 8424 info managedVMCreator,1688 Using datastore CX3_260_OS_FC10K for VMX
11 2009-08-18 14:57:18.734 'App' 6848 info imageProcessingTaskStep,194 VmiImportTask::task{17} step "create VM" destroyed
11 2009-08-18 14:57:18.734 'App' 6848 error vmiImportTask,304 Error during creation of target VM
11 2009-08-18 14:57:18.734 'App' 6848 info imageProcessingTaskStep,194 VmiImportTask::task{17} step "create and clone to VM" destroyed
11 2009-08-18 14:57:18.734 'App' 6848 info imageProcessingTaskStep,194 VmiImportTask::task{17} step "Clone VM" destroyed
11 2009-08-18 14:57:18.734 'App' 6848 error imageProcessingTaskImpl,552 VmiImportTask::task{17}: Image processing task has failed with MethodFault::Exception: vim.fault.NoPermission
11 2009-08-18 14:57:18.734 'App' 6848 verbose imageProcessingTaskImpl,154 VmiImportTask::task{17}: SetState to error
11 2009-08-18 14:57:18.765 'App' 1296 verbose disposable,122 object explicitly disposed: VmiImportTask::task{17}
11 2009-08-18 14:57:18.953 'App' 6848 verbose disposable,122 object explicitly disposed: computer={60466e6976410695470b4342297a6eb4e5892177}
11 2009-08-18 14:57:18.953 'App' 6848 verbose diskSet,114 Cleaning up computer's child objects
11 2009-08-18 14:57:18.953 'App' 6848 verbose diskSet,130 Unregistring volume id=virtVol={computer={60466e6976410695470b4342297a6eb4e5892177},0}
11 2009-08-18 14:57:19.124 'App' 6848 verbose diskSet,140 Unregistring disk id=disk={540ec60ed23e29948868bc8c488bd7bc5c854f53}
11 2009-08-18 14:57:19.124 'App' 1296 verbose imageProcessingTaskImpl,123 VmiImportTask::task{17} being destroyed
2009-08-18 14:57:19.156 'App' 6848 verbose CloseSession called for session id=71F77D0E-23B9-45D9-A899-2579BDDD7D8E
2009-08-18 14:57:19.156 'VmdbAdapter' 6848 verbose Removed vmdb connection /db/connection/#b/

Any ideas?