Sorry about that last post, I made the assumption that we all connect to vcenter (not directly to the host as you had stated).
regarding your last post:
A) network TO the esxi machine is working fine
to the host, NOT the vm, which still requires proper network configuration outside of vmware
b) network within the vm is fine
??? with the screenshot you provided your winxp's network connection is showing limited or no network connection
leaving: network between esxi and the vm is where it's hosed....
if thats what you believe then, I would recommend, like André, create a new vm port group and attach your vm to that.
otherwise, again like André said, check your LAN configs.
I have used converter many times (many versions on many OS's) and have not seen this happen on winxp
wish I could have been more help.
good luck,
low