The reconfiguration fails due to:
2014-02-18T20:53:11.546-06:00 [02160 warning 'Default'] [,0] FILE: FileIO_Lock on '\\Hnsps1000\VM1\hnsps052C.latam.americas.gcn.local\hnsps052C.latam.americas.gcn.local.vmdk' failed: Lock timed out
Once the conversion complete you can try only to reconfig your target VM.
Try this and share the result.
Thanks