We started out using VMware Converter 3 standalone (the paid for version available in 2007) to do the import. We had originally used it to do some P to V conversions.
After we had problems, the decision was made to try the vCenter viclient to do the Import. We right clicked on an ESX server inside of vCenter (after installing the VMware Converter Enterprise 4.0.3 via PluginManager) and chose import. We configured all the import settings, and the import worked the first time. Maybe there was a media issue with the origianal software. But since vCenter worked, we never went back to find out. Thanks for your suggestion!
Andoven