Thanks for you help.
Yes, refer to the tech papers on V2P - http://www.vmware.com/resources/techresources/424
Thanks. I was not sure if that was valid for 3.5.
As far as tools go, there really isn't a difference in how they work. You treat the virtual just like a physical machine, you have a CD rom, and a hard drive. You put whatever imaging product you have (Acronis, ghost, etc..) image the drive and image the physical box with that disk image. You have console access to the VM so you should be able to do the same thing as you would if you were standing in front of a regular machine.
It's pretty straight forward.