P2V

Found free utility from MS to migrate a machine to a vm (physical to virtual - p2v).

http://technet.microsoft.com/en-us/sysinternals/ee656415.aspx

VMWare has their free Converter as well: http://www.vmware.com/products/converter/

Remember, it’s as if you dropped your hard drive into another computer. So, windows activation may complain.