I'm having an issue running VMware Converter 3.0.0 build 39557 from the boot CD where the conversion process takes upwards of 30 hours to complete.
I'm running the test on an HP DL380 G2. I've tried pushing the image to both a USB fire-lite drive and across the network using both a crossover cable (directly connected) and through a switch.
I've been able to run the conversion with similar settings on a G1 DL380 but cannot seem to speed things up on the G2.
Do you have alot of small files on your physical computer? I has a server that had 100,000+ 2k files in one directory and it took forever also. Once I deleted them it worked perfectly. Also check the converter log files in %windir%\temp\vmware-temp and see what it is getting hung up on.