Vmacore::TimeoutException(Operation timed out)

I am trying to convert a Windows 7 machine with 4GB into a VM using VMware vCenter Converter standalone.

I keep on getting following internal error:

Error vmware-converter-worker[05796] [Originator@6876 sub=Ufa.HTTPService]
Failed to read request; stream: <io_obj p:0x01446f2c, h:-1, <pipe '\\.\pipe\vmware-converter-worker-soap'>,
<pipe '\\.\pipe\vmware-converter-worker-soap'>>,
error: class Vmacore::TimeoutException(Operation timed out)

I have tried to disable UAC and Turn of firewall and antivirus. I am lost here. Any hints on how to fix this?

I found some info linking this to an issue regarding systems that have the /3GB switch added in the boot.ini file located on the boot drive - but I have no boot.ini on the computer.

TIA, Kind regards S. Dalby