Hi,
from the log posted you may have problem with user privileges, double-check that user specified for conversion has full admin rights on the server.
Also take a look at this KBs:
VMware KB: vCenter Converter fails to import machine at 1%
VMware KB: Required VMware vCenter Converter 4.x/5.x ports
VMware KB: Converting a physical or virtual machine with VMware Converter takes longer than expected
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Regards,
P.