I'd like to use alternatives to System Center Virtual Machine Manager 2008 is possible, in other words, any FREE tools?
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3Google "Pysical to virtual conversion" or P2V. There are several solutions available. Unfortunately it sounds as though not many have had success with Microsoft's solution.
Try the following: 1. Download and install the VMWare Converter and follow the instructions to convert the physical machine. 2. Download the VMWare to VHD conversion utility from VMToolkit.com and convert the image.
This didn't work for me when I tried it last week, but I think it is because the drive I converted used PGP.
Before SCVMM, Microsoft's solution was the Virtual Server Migration Toolkit. This requires Windows Server 2003 Automated Deployment Services, which in turn can only be installed on Windows Server 2003 Enterprise Edition. It's about as far from a free tool as you can get. It only works on SP1, not SP2 (unless ADS has been updated since I last checked), and you have to obtain all the patches you've applied to the physical system.
ADS is limited to four partitions per physical disk, because it can't create extended partitions. If your physical system has more than four partitions you have a problem.
Once you do have it running, though, it does actually work.
Many disk copying tools like Ghost or True Image can now produce .vhd files from a physical system.
Use VMWare its not free, but you can get a decent 30 day trial, which should be enough to do your conversions. VMWare also has other great advantages if you're willing to pay for the product.