Converter doesn't support Xen VMs. You may want to look at http://communities.vmware.com/message/1988062#1988062 - it is the same error and looks like there is a success story if you switch to basic kernel and convert the VM.
*Please, don't forget the awarding points for "helpful" and/or "correct" answers.
*Por favor, não esqueça de atribuir os pontos se a resposta foi útil ou resolveu o problema.*
Thank you/Obrigado
