Just fixed an annoying problem with a P2V of a Windows 7 laptop. The VMware converter would throw the error "FAILED: Unable to find the system volume, reconfiguration is not possible" on the reconfiguration phase and bomb out at 98% completion. If you tried to boot the VM anyway you would get a BOSD with error 7B.
After a bit of Google-Fu I found the following steps were successful in repairing the the VM to a point where the converter could properly run the reconfiguration on the VM.
1. Boot the VM to a Windows 7 ISO and select the repair option
2. Open a command prompt and run the following commands
c:\> bootrec.exe /fixmbr
c:\> bootsect.exe /nt60 all /force
c:\> attrib -h -s C:\boot\BCD
c:\> del C:\boot\BCD
c:\> bootrec.exe /rebuildbcd
3. Shutdown the VM
4. Open the VM in the converter and reconfigure the machine
5. The VM should now boot properly