VMWare provides a free utility that can clone physical machines into a VMWare virtual machine; it can also convert other vendors’ VM formats into the VMWare format.  I can think of so many uses for this very handy tool.  It has a very simple and easy user interface that walks you through the steps.  Here is a link to the product:

http://www.vmware.com/products/converter/

One important note:  When you are specifying the name and destination of the resultant VM image, the location must be in UNC format (i.e., \machinename\share).  The thing that got me, though, was that it will give you an uninformative error if you leave a trailing backslash (‘') at the end of the UNC path, saying something like it couldn’t connect to the share for some reason.  Just remove the last slash and you’ll be good to go.