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Error converting a physical WinXP using vcenter converter standalone

Hi all,
I'm  trying to convert a WinXP (SP2)  notebook using vCenter Standalone Converter 4.0.1-build-161434.  I'm using local installation.

I get the following error:
FAILED: A general system error occurred:
Remote server closed connection after 0 response bytes read

I'm quite new to VMware so I'm not sure whether I understand it right, that the free standalone converter includes all necessary software.
It seems to me that the server is not working OK on my machine. Do I need to install a server separately or ...?

tnx for any help, clues,....
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vmwarun - Arun
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Are you using an OEM version of Windows XP on your notebook ?
Where are you trying to convert this to?  Do you have VMware Workstation installed?  Is it VMware Server, ESX?  
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I got this error when doing it directly.

I then install Converter 3 and did it remotely (using the destinations IP address) from the host computer (Host had Converter 3 installed)

I followed this article:
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to all participating experts:

- I'm not sure whether it is OEM version, but very likely it is. I have however a licence key for new WInXP istallations
- I tried to convert it to VMPlayer and to VM Workstation, same error in both cases
- I'm using the simplest environment: just the free VMPlayer, no VMWare Workstation or anything else
- the installation of Converter was done with default options, so LOCAL

this seems to be working. there were 3 processes that I ended in Task manager:

after starting the converter again it asked to start the server, and then the conversion went OK