Update. So I was able to finally start the migration. There appears to be some sort of IP block list that my P2V machine got on internal to the ubuntu machine. I figured this out by trying to SSH to the machine from the P2V machine which failed, but then I tried it from another machine and it succeeded. So I changed the IP address and I am now able to start the P2V process.
My issue now is that while I am converting over the virtual disk it appears to hang. I have tried this 2 times and it hangs in different points but with the same error message on the worker log.
2013-06-13T10:22:09.556-05:00 [02688 error 'Ufa.HTTPService'] Failed to read request; stream: <io_obj p:0x01087364, h:-1, <pipe '\\.\pipe\vmware-converter-worker-soap'>, <pipe '\\.\pipe\vmware-converter-worker-soap'>>, error: class Vmacore::TimeoutException(Operation timed out)
Once it hung at 44.% and the next time it only made it to 25%. It looks like it is having problems with the stream of data. Any help is really appreciated. I have added the worker logs to this issue.