try again locally to your machine as the local admin but this time try msconfiging your box to rid any conflicting services. If this doesnt work, post the vmware-converter-#.log file below.
Click Start --> enter "msconfig" (without quotes)
Click on the "services" tab
Check the box for "hide all Microsoft services"
Select "disable all", then re-check the VMware services
Select the "startup" tab
Select "disable all" then re-check the VMware startup items
Reboot