FYI..
Chris W.
We have a domain policy which disables the default local 'Administrator' account.
With that account 'disabled' I could not get converter to work.
I even tried to make a new 'root' account on the Window server, made it a local administrator and it kept failing with "Permissions to perform this operation was denied"
My domain account would not work either (which lead me to this posting in the first place)
So, I re-enabled the local 'Administrator' account, set the password then went back to converted and it was able to P2V the VM w/o issues.