VMware converter standalone is a free download:
http://www.vmware.com/products/converter/
Got Yas:
Insufficient permissions to connect to xxxxxxx ADMIN$ for Windows XP machine you are trying to convert
run gpedit.msc
- Computer Configuration
- Windows Settings
- Security Settings
- Local Policies
- Security Option
- Network access: Sharing and security model for local accounts
By default XP has the Sharing and security model for local accounts set to "Guest only - local users authenticate as Guest" - this needs to be changed to "Classic - local users authenticate as themselves"
This way you can access the machine remotely with the admin account & do the conversion.