1. Is C:\ it's own disk or are C:\ and D:\ 2 partitions on the same physical disk/array?
-->they are on same physical disk/array
2. D:\ is not a Windows dynamic disk, right?
--> it is MBR disk only
3. Are you resizing the disks during conversion?
--> I did not resize it, just selected thin provisioning
4. What VMFS block size do you have on your destination datastore on the ESX(i) side? With 1.7TB the D:\ drive virtual Disk needs a 8MB VMFS blocksize that supports a maximum filesize of 2TB-512Byte.
-->yes, it is 8MBS VMFS block size
5. Do you have enough free space on that destination datastore (after C:\ finishes)? You won't be able to fit the full 400GB C:\ and 1.7TB D:\ on the same VMFS as ESXi <5.0 only supports LUNs of up to 2TB.
--> it has enough space