The error is
2014-06-25T22:00:51.796-04:00 [04108 error 'task-2'] BlockLevelVolumeCloneMgr::ReadAndSkipBadBlocks(): Error (type: 2, code: 1117) reading 655360 bytes starting at 0x0000004f865e0000 from the source volume D:
2014-06-25T22:00:51.796-04:00 [04108 error 'task-2'] BlockLevelVolumeCloneMgr::ReadAndSkipBadBlocks(): Unrecoverable error (type: 2, code: 1117) reading 655360 bytes starting from 0x0000004f865e0000 from the source volume D: 2014-06-25T22:00:51.828-04:00 [04108 error 'task-2'] BlockLevelVolumeCloneMgr::CloneVolume: failed with exception converter.fault.FileIOFault
You should run 'chkdsk d: /b' command and then try again the conversion.
HTH