I have used converter seamlessly and easily on other machine's. For some reason this maching would fail at 2% rather quickly. I scan disked, defraged, and tried every option in Converter with no success. I ended up using acronis full image backup and restored it in a fresh vmware virtual machine and all seems to work perfect.
The only change I made on this machine recently was that I had to switch hard drives so I used acronis to do a full disk copy over, and the machine ran perfectly after that and did not require a re-activation so not much changed. That is the only change I can think of that I did that could cause Converter to fail.
I even reinstalled converter, still no luck.