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gclayburg
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I ran into this issue as well.  For me, the windows laptop I was trying to convert was not a member of a domain. It only had a local user to log on with.  When I ran vmware converter, it gave the option to save to a network location in the form of \\networksharename\folder.  It allowed me to browse the location and select a directory.  It also prompted me for the credentials to access it.  However, when the conversion process starts, it appears that these credentials I entered are not used.  Instead, like Sodoshi suggests, the conversion propcess attempts to use the credentials of the local logged on user, which of course my network server knows nothing about.

This seems like an oversight or a bug to me.  The workaround in my case was to not try to save the image to a remote windows share.  I just created the image on a USB connected drive.

 

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