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http://kb.vmware.com/selfservice/search.do?cmd=displayKC&docType=kc&externalId=1030145&sliceId=1&docTypeID=DT_KB_1_1&dialogID=338810597&stateId=1%200%20338822131

VMware vCenter Converter fails at 98% with the error: unable to create

Symptoms

• Converting a Windows Server 2003 with Converter fails at 98%
• You see the error:
  
  unable to create '\\.\xxx\$Reconfig$'
  
  
• The converted virtual machine is not bootable and fails at a blue screen with a Stop Code error of 0x000000F4.
  
  Note: A blue screen with Stop Code error of 0x0000007B has also been reported for this issue.
  

Resolution

This issue can occur on systems that have the /3GB parameter added in the boot.ini file located on the boot drive.

This parameter is often inserted to address operating systems that require more than 3 GB RAM on physical systems using a Windows 2003 32-bit operating system. It maybe necessary to remove this parameter to convert the system. 

 

If you require the /3GB parameter, see Running Microsoft Windows 2003 32-bit guest operating systems with the /3GB switch in boot.ini results in performance or stability issues (1026851) for more information.

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