1) can you tell me whether the files are getting copied or moved to the destiantion host.
Once you get the converter Job start its allocate a vm folder in the DS (DataStore)and start copying the data over them. its copied Never moved.
2)through which IP its happening. (vmotion/kernel network) or normal server IP
The IP used in the conversion is the kernel network which is used as the management network..
3) what about the case of V2V from one Datacenter to datacenter.
The V2V doesnt care if you have shared storage or not. both the Datacenter prompt for there password to gain access on there relative DS . So not really required of shared storage between both vcenter or Datacenter servers.
I believe you got all the answers .