Because the fail is at th 95% reconfig phase, the blue screen is more likely due to Converter not successfully injecting the virtual SCSI drivers. Whether you're going to get AD errors is another issue. I've successfully converted a DC / Exchange server (not SBS) and it often converts AD without error as long as no one is logged on the network. Normally, these P2V is for testing purposes, so having to restore AD after the P2V is not a big deal in my case.
That said, one workaround I've used for Converter failing in reconfig phase is to create a new blank VM in Workstation or Server (not ESX) with IDE disks instead of SCSI. Windows will use it's built-in drivers for IDE rather than needing the Buslogic or LSI SCSI drivers. Once I've booted the VM, I can manually installed the SCSI drivers and convert the virtual drives to SCSI, if I need to move the VM to an ESX server. A lot of steps, but it's no cost, just labor.
If you have the "restore anywhere" option in an imaging program like Acronis Trueimage or Symantec Backup Exec System Recovery (a.k.a.: Ghost), then your could image your physical machine and restore it into a new blank VM, using the "restore anywhere" feature of the imaging program to inject the drivers. (IOW, use the imaging program to do the P2V, rather than Converter.) I tried this with BESR and like Converter, the injecting of the SCSI drivers sometimes works, sometimes fails. (Other than restore to a VM with IDE disks.) So no real solution there, just an alternative.
