I get this error:

Unable to load the source virtual machine or image. The file may be corrupt, or of an unsupported format

This is the log file

Log for VMware Converter Client, pid=4444, version=3.0.1, build=build-44840, option=Release, section=2
[2007-07-31 16:47:10.373 'App' 5264 info] Current working directory: C:\Users\jotten\Desktop\TOOLS
[2007-07-31 16:47:10.375 'P2V' 5264 info] [p2vSupport,171] P2V logger created
[2007-07-31 16:47:10.375 'App' 5264 info] Vmacore::InitSSL: doVersionCheck = true, handshakeTimeoutUs = 120000000
[2007-07-31 16:47:10.376 'P2V' 5264 info] [p2vSupport,177] SSL context created
[2007-07-31 16:47:10.376 'P2V' 5264 info] [p2vSupport,187] AppInit completed
[2007-07-31 16:47:10.376 'P2V' 5264 verbose] [p2vLicenseManager,69] This product Hard Expires: false
[2007-07-31 16:47:10.452 'P2V' 5264 verbose] [jobManager,406] Deserializing the job manager's state
[2007-07-31 16:47:10.454 'P2V' 5264 verbose] [jobManager,496] Deserializing
[2007-07-31 16:47:10.454 'P2V' 5264 verbose] [p2vLicenseManager,232] License job init with license file: C:\Users\jotten\AppData\Roaming\VMware\p2vlcns
[2007-07-31 16:47:10.456 'P2V' 5264 verbose] [p2vLicenseManager,247] License job Success !

[2007-07-31 16:47:10.461 'P2V' 4692 verbose] [task,339] Transition from None to InProgress requested
[2007-07-31 16:47:10.461 'P2V' 4692 verbose] [task,388] Transition succeeded
[2007-07-31 16:47:10.461 'P2V' 4692 info] [task,274] Starting execution of a Task
[2007-07-31 16:47:10.462 'P2V' 4692 verbose] [jobDeserializationTask,113] Deserializing the individual jobs from C:\Users\jotten\AppData\Roaming\VMware\p2v30\jobs
[2007-07-31 16:47:10.463 'P2V' 4692 info] [task,276] Task execution completed
[2007-07-31 16:47:10.464 'P2V' 4692 verbose] [task,339] Transition from InProgress to Success requested
[2007-07-31 16:47:10.464 'P2V' 4692 verbose] [task,388] Transition succeeded
[2007-07-31 16:47:10.464 'P2V' 4692 verbose] [jobManager,367] Raising deserialization done event (7)
[2007-07-31 16:47:10.465 'P2V' 5264 verbose] [p2vLicenseManager,232] License job init with license file: C:\Users\jotten\AppData\Roaming\VMware\p2vlcns
[2007-07-31 16:47:10.466 'P2V' 5264 verbose] [p2vLicenseManager,247] License job Success !

[2007-07-31 16:47:16.331 'P2V' 5264 verbose] [p2vLicenseManager,232] License job init with license file: C:\Users\jotten\AppData\Roaming\VMware\p2vlcns
[2007-07-31 16:47:16.333 'P2V' 5264 verbose] [p2vLicenseManager,247] License job Success !

[2007-07-31 16:47:20.992 'P2V' 4708 verbose] [task,339] Transition from None to InProgress requested
[2007-07-31 16:47:20.992 'P2V' 4708 verbose] [task,388] Transition succeeded
[2007-07-31 16:47:20.992 'P2V' 4708 info] [task,274] Starting execution of a Task
[2007-07-31 16:47:20.993 'ClientConnection' 4708 info] Connecting to \\.\pipe\vmware-ufad-p2v30-vmdb, use SSL: true
[2007-07-31 16:47:20.993 'ClientConnection' 4708 info] Successfully connected to \\.\pipe\vmware-ufad-p2v30-vmdb
[2007-07-31 16:47:21.002 'VmdbSvc' 4708 verbose] Connected to stream: SSL([class Vmacore::System::NamedPipeClientStreamWin32:02A7FFA0])
[2007-07-31 16:47:21.003 'BaseLibs' 1152 warning] [Vmdb_Unset] Unsetting unknown path: /vmomi/

[2007-07-31 16:47:21.014 'ClientConnection' 4708 info] Making sure that UFAD interface has version vmware-ufad-p2v30-build-44840
[2007-07-31 16:47:21.027 'ClientConnection' 4708 info] UFAD interface version is vmware-ufad-p2v30-build-44840
[2007-07-31 16:47:21.039 'P2V' 4708 info] [task,276] Task execution completed
[2007-07-31 16:47:21.039 'P2V' 4708 verbose] [task,339] Transition from InProgress to Success requested
[2007-07-31 16:47:21.039 'P2V' 4708 verbose] [task,388] Transition succeeded
[2007-07-31 16:47:21.058 'P2V' 5264 info] [ufaSession,45] QuerySourceInfo called
[2007-07-31 16:47:21.058 'P2V' 4708 verbose] [task,339] Transition from None to InProgress requested
[2007-07-31 16:47:21.058 'P2V' 4708 verbose] [task,388] Transition succeeded
[2007-07-31 16:47:21.058 'P2V' 4708 info] [task,274] Starting execution of a Task
[2007-07-31 16:47:21.058 'P2V' 4708 info] [ufaTask,191] Successfully connected to VMImporter
[2007-07-31 16:47:21.072 'App' 4708 verbose] [imageProcessingTaskWrapper,109] Successfully connected to VmiQuerySourceInfoTask::task{7}
[2007-07-31 16:47:21.097 'App' 4708 verbose] [imageProcessingTaskWrapper,817] Start managed object method for task VmiQuerySourceInfoTask::task{7}
[2007-07-31 16:47:21.108 'App' 4708 verbose] [imageProcessingTaskWrapper,437] Waiting for updates from VmiQuerySourceInfoTask::task{7}
[2007-07-31 16:47:21.108 'App' 4708 verbose] [imageProcessingTaskWrapper,668] (Re)Start waiting for property updates from VmiQuerySourceInfoTask::task{7}
[2007-07-31 16:47:21.109 'App' 3524 verbose] [imageProcessingTaskWrapper,886] Remote task VmiQuerySourceInfoTask::task{7} completed
[2007-07-31 16:47:21.115 'App' 5228 verbose] [imageProcessingTaskWrapper,749] Got an update from VmiQuerySourceInfoTask::task{7}
[2007-07-31 16:47:21.121 'App' 4708 verbose] [imageProcessingTaskWrapper,515] Cleaning up remote task VmiQuerySourceInfoTask::task{7}
[2007-07-31 16:47:21.138 'App' 4708 verbose] [imageProcessingTaskWrapper,1201] Disposing task wrapper for task VmiQuerySourceInfoTask::task{7}
[2007-07-31 16:47:21.162 'P2V' 4708 error] [task,295] Task failed: P2VError IMPORT_SOURCE_NOT_RECOGNIZED()
[2007-07-31 16:47:21.162 'P2V' 4708 verbose] [task,339] Transition from InProgress to Failure requested
[2007-07-31 16:47:21.162 'P2V' 4708 verbose] [task,388] Transition succeeded

and the other log:

[#9] [2007-07-31 16:47:21.028 'App' 3344 info] Impersonating user jotten in session E2BD01EE-F082-4946-A6BA-6961E56E838A
[#9] [2007-07-31 16:47:21.060 'App' 3356 info] [vmImporter,140] Entering UFAD at QuerySourceInfo
[#9] [2007-07-31 16:47:21.060 'App' 3356 verbose] [vmImporter,141] source:
[#9] (sysimage.VPCSourceVMSpec) {
[#9] dynamicType = <unset>,
[#9] vmcFilePath = "I:\VMWARE\Win2k3R2EE_EXCH_LCS.vmc",
[#9] }
[#9] [2007-07-31 16:47:21.060 'App' 3356 verbose] [ufaConnection,94] Creating local adapter...
[#9] [2007-07-31 16:47:21.061 'App' 3356 verbose] [disposable,69] Registering disposable session object id=VmiQuerySourceInfoTask::task{7}
[#9] [2007-07-31 16:47:21.061 'App' 3356 verbose] [disposable,80] Associating disposable session object id=VmiQuerySourceInfoTask::task{7} with session id=E2BD01EE-F082-4946-A6BA-6961E56E838A
[#9] [2007-07-31 16:47:21.098 'App' 3344 verbose] [imageProcessingTaskImpl,504] VmiQuerySourceInfoTask::task{7}: Starting execution of an image processing task
[#9] [2007-07-31 16:47:21.098 'App' 3344 verbose] [imageProcessingTaskImpl,154] VmiQuerySourceInfoTask::task{7}: SetState to running
[#9] [2007-07-31 16:47:21.098 'App' 3344 info] [vmiQuerySourceInfoTask,75] VmiQuerySourceInfoTask initialized
[#9] [2007-07-31 16:47:21.099 'App' 3344 verbose] [ufaConnection,94] Creating local adapter...
[#9] [2007-07-31 16:47:21.104 'App' 3344 info] [,0] DISKLIB-LINK : "I:\VMWARE\drive-0.vmdk" : failed to open (The system cannot find the file specified).
[#9] [2007-07-31 16:47:21.105 'App' 3344 info] [,0] DISKLIB-CHAIN : "I:\VMWARE\drive-0.vmdk" : failed to open (The system cannot find the file specified).
[#9] [2007-07-31 16:47:21.105 'App' 3344 info] [,0] DISKLIB-LIB : Failed to open 'I:\VMWARE\drive-0.vmdk' with flags 0x11 (The system cannot find the file specified).
[#9] [2007-07-31 16:47:21.105 'App' 3344 info] [,0] DISKLIB-LIB : Failed to unlink 'I:\VMWARE\drive-0.vmdk' : 25
[#9] [2007-07-31 16:47:21.105 'App' 3344 info] [,0] DISKLIB-LINK : "I:\VMWARE\" : failed to open (The system cannot find the path specified).
[#9] [2007-07-31 16:47:21.106 'App' 3344 info] [,0] DISKLIB-CHAIN : "I:\VMWARE\" : failed to open (The system cannot find the path specified).
[#9] [2007-07-31 16:47:21.106 'App' 3344 info] [,0] DISKLIB-LIB : Failed to open 'I:\VMWARE\' with flags 0x15 (The system cannot find the path specified).
[#9] [2007-07-31 16:47:21.106 'App' 3344 error] [vpcDiskWin32,480] Failed opening VirtualPC disk file I:\VMWARE\: The system cannot find the path specified
[#9] [2007-07-31 16:47:21.107 'App' 3344 error] [vpcImportSource,182] Import source not recognized
[#9] [2007-07-31 16:47:21.107 'App' 3344 error] [imageProcessingTaskImpl,552] VmiQuerySourceInfoTask::task{7}: Image processing task has failed with MethodFault::Exception: sysimage.fault.IncompatibilityFault
[#9] [2007-07-31 16:47:21.107 'App' 3344 verbose] [imageProcessingTaskImpl,154] VmiQuerySourceInfoTask::task{7}: SetState to error
[#9] [2007-07-31 16:47:21.150 'App' 3360 verbose] [disposable,122] object explicitly disposed: VmiQuerySourceInfoTask::task{7}
[#9] [2007-07-31 16:47:21.151 'App' 3360 verbose] [imageProcessingTaskImpl,123] VmiQuerySourceInfoTask::task{7} being destroyed

As you can see I am trying to convert te standard Virtual Server (MS) image that I download from Microsoft with Exchange 2007.. Help is needed or Vmware Converter needs to be updated with the new format.

Also tried importing with Vmware Workstation 6.. same problem...