VMware Converter
From Mike Beane's Blog
VMware Converter 3.0 - Free
As mentioned last year on the same day with VMWare Server Beta, VMWare has released VMware Converter 3.0 for free.
Convert Physical Machines to Virtual Machines – Free!
Use the intuitive wizard-driven interface of VMware Converter to convert your physical machines to virtual machines. VMware Converter quickly converts Microsoft Windows based physical machines and third party image formats to VMware virtual machines. It also converts virtual machines between VMware platforms. Automate and simplify physical to virtual machine conversions as well as conversions between virtual machine formats with VMware Converter.
Head over and pick it up!