Could you please give more info about the source machine - what kind of disks/partitions are there, are they RAID, LVM, etc.. Pasting /etc/fstab is a good idea.
Note also some Converter limitations in release notes. e.g "Converter Standalone does not recognize source volumes that reside on Linux Software RAID configurations" and "P2V conversions of SLES 9 sources cannot complete, if the root directory is located on an LVM disk"