Here is what is in the agent log:
[#8] [2011-10-05 09:01:18.894 02372 error 'task-6'] [GetDiskTicketInfos] Timed out while waiting for the response.
[#8] [2011-10-05 09:01:18.894 02372 error 'task-6'] ReconfigTask failed to open the target. Error Operation timed out
[#8] [2011-10-05 09:01:18.894 02372 error 'task-6'] TaskImpl has failed with MethodFault::Exception: converter.fault.ReconfigurationFault
[#8] [2011-10-05 09:01:18.894 02372 error 'App'] Task failed:
[#8] [2011-10-05 09:01:18.894 02372 info 'task-6'] Scheduled timer canceled, StopKeepAlive succeeds
[#8] [2011-10-05 09:01:18.894 02372 info 'App'] Task Completed : task-6
[#8] [2011-10-05 09:02:18.907 04232 warning 'task-6'] [PassDiskTickets] There is no request corresonding to this response, ignoring...
Reconfiguration opens the target VMDK, mounts the system volume and updates some registry values in order to make the destination bootable. GetDiskTicketInfos tries to get NFC tickets from ESX or VC server (that is, one-shot passwords) for establishing NFC session to the ESX host that would allow to access the target VMDK directly. The error is timeout while waiting for a NFC ticket.
In order to get NFC ticket from ESX/VC one needs to have an authenticated connection, that means login credentials. Since Converter Agent is deployed on an (unknown unsecure) source machine, in order to avoid passing ESX/VC credentials to agent, there is a mechanism that allows Agent to request an NFC ticket from the Worker (which is on the same machine where Converter Server has been installed), it in turn requests an NFC ticket and passes it back to the agent which then connects to the VMDK. Looking at the Worker log there is the following part:
[#2] [2011-10-05 09:00:23.343 01416 info 'task-1'] Reusing existing VIM connection to esxsrv17.jacksoncounty.org
[#2] [2011-10-05 09:02:23.359 01416 info 'task-1'] GetManagedDiskName: Get virtual disk filebacking [datastore1] E1Win72/E1Win72.vmdk
[#2] [2011-10-05 09:02:23.359 01416 info 'task-1'] GetManagedDiskName: ticket has empty hostname, using hostname esxsrv17.jacksoncounty.org from connection
[#2] [2011-10-05 09:02:23.359 01416 info 'task-1'] GetManagedDiskName: updating nfc port as 902
[#2] [2011-10-05 09:02:23.359 01416 info 'task-1'] GetManagedDiskName: get protocol as ha-nfc
[#2] [2011-10-05 09:02:23.359 01416 info 'task-1'] GetManagedDiskName: Get disklib file name as ha-nfc://[datastore1] E1Win72/E1Win72.vmdk@esxsrv17.jacksoncounty.org:902!52 e5 d4 3c 56 91 58 77-02 cf 40 d9 46 2b 29 26
So the connection to the ESX host happened at 9:00:23, but then the actual NFC ticket was returned at 9:02:23, that is 2 minutes later. The timeout in agent has been set to 1 minute, so that's why it fails with a timeout error. However in the agent log the last message is about a response without a pending requeest - this is the response we got with 2 minutes delay and we have abandoned waiting for. During this time Converter has made just one call to the ESX server, which is looking for the target VM.
I have no idea why this search took so long - a network problem, heavy load on the ESX host, etc. However the code in Converter is pretty straight forward.