2014-01-17T12:41:27.850-05:00 [03684 warning 'Default'] Failed to get capacity for \\.\PhysicalDrive0: error opening disk device: The process cannot access the file because it is being used by another process (32)
Can you try logging exactly as user 'administrator'? It is not necessary connect to converter as local server, it can be remote and enter 'localhost' as host name.
HTH
Plamen