Unfortunately the services can not be started. Could you try the following: when installation fails do not answer Cancel but go to command prompt, change folder to "C:\Program Files\VMware\VMware vCenter Converter Standalone\" and execute the following command:
"C:\Program Files\VMware\VMware vCenter Converter Standalone\vmware-converter.exe" "C:\Documents and Settings\All Users\Application Data\VMware\VMware vCenter Converter Standalone\converter-worker.xml"
This will start the service in the console and any errors like missing DLLs will be shown. IMO there is missing MSCRT package.
HTH