Found this in the recently posted "Server Migrations with Vmware Converter" presentation from Vmware TSX....
http://www.vmware-tsx.com/download.php?asset_id=48
Converter Best Practices:
1. Agent Installation Location[/b]
 Locally: Install Converter and agent directly on source machine if converting directly into ESX Server
 Remotely: Connect to source machine over network to install agent
 Use local administrator account
 Avoid domain accounts that have restrictive policies
 Allow reboot for Windows NT 4.0 and 2000 sources
 Do not deactivate services or harden security
> Workstation service
> Server service
> TCP/IP NetBIOS Helper service
> Volume Shadow Copy service (Windows 2003 or XP)
 Ensure sufficient free disk space (at least 200MB)
 Mirrored or striped volumes across multiple disks should be broken
 Dynamic disks with utility partitions should use cold cloning
 Disable Windows Simple File Sharing (Windows XP only)
 Disable anti-virus software
 Keep users off if possible
 Power off VM if not using hot cloning
 VCB VM exports need editing prior to import
 Edit virtual disk filenames inside .vmx
 Rename filenames for .vmdk files to match those listed in .vmx
 Edit index .vmdk file to change references to span files
 Open TCP/UDP ports 139, 445, and 902
 Open network ports between source and destination
> Alternative is to create a VM visible to source, copy VM files to location visible to destination, and import VM
 Use FQDN to connect to both source and VI3
 Run on OS greater than or equal to source if source is
> VM and powered off, or
> Symantec Livestate System Image
 Starter edition limitations and workarounds
> Cannot remote hot clone directly into VI3
\- Workaround 1: install Converter on source machine
\- Workaround 2: select standalone VM as destination, and then import VM to VI3 using two steps
> Cannot run multiple tasks concurrently
\- Workaround: run multiple copies of Converter
> Cannot cold clone
\- Workaround: create new VM, use third-party cloning application such as Ghost, and run Converter configure
 Do not resize volume for fastest clone speed (block-level copying)
 Resize volumes if source disks have inefficient utilization (resorts to file-level copying)
 Use cold-cloning disk-based cloning (not volume-based) for non-Windows systems
 Use hot cloning for Windows NT 4.0 systems to avoid NTFS upgrade
 Destination needs to be writeable
 Do not resize volume for fastest clone speed (block-level copying)
 Resize volumes if source disks have inefficient utilization (resorts to file-level copying)
 Use cold-cloning disk-based cloning (not volume-based) for non-Windows systems
 Use hot cloning for Windows NT 4.0 systems to avoid NTFS upgrade
 Destination needs to be writeable
 Avoid cloning utility partitions
 Check partition numbers in boot.ini
 Automatic Install VMware Tools option is only available for ESX Server VMs
8. Clean-Up Prior to Power On[/b]
 Edit VM settings according to desired goal
> Number of vCPUs
> USB devices
> Serial and parallel devices
> SCSI controller type (BusLogic vs. LSI Logic)
 OEM source may require license activation
> SMBIOS.reflectHost = TRUE in .vmx may avoid reactivation
> Requires destination host to have same hardware
9. Clean-Up After Power On[/b]
 Detect hardware
> VMware Tools installation may hang if hardware not detected
 Allow reboots to occur
> Detect hardware and VMware Tools installation
 Verify HAL and change if necessary
> Number of vCPUs
> USB devices
> Serial and parallel devices
> SCSI controller type (BusLogic vs. LSI Logic)
 Blue screen after powering on
> Start Windows in Safe Mode and uninstall hardware-specific applications or services
> Attach VM to Helper VM to remove hardware-specific drivers
 No keyboard/mouse
> Select Workstation/Server VM instead of ESX Server, then import VM to ESX Server
> Use PS/2 keyboard/mouse on source
 Display problems
> Uninstall PC Anywhere prior to installing VMware Tools
0) Preparation
- Defrag the disks W2K3
- clean up c:\temp
- run chkdsk