There is an issue with some NICS (especially older Compaq G1 ones) where the VMware Converter process hangs at 2%, status = "In Progress". Setting the switch port and NIC to Auto Speed/Duplex will resolve this issue.

Please see the VMware discussion article:
http://www.vmware.com/community/thread.jspa?messageID=641866&#641866

This was a similar issue with VMware P2V:
http://www.vmware.com/community/thread.jspa?messageID=503749

Thanks,
Will