WinXP Conversion Fails

Hot Clone fails during wizard on VM Options screen after choosing Disk Space Allocation and clicking next. "UFAD Connection was lost during an operation"

Here is the last bit of the log:

[2007-01-15 13:10:12.957 '\[ufaTask,109] Successfully connected to VMImporter

[2007-01-15 13:10:13.004 '\[imageProcessingTaskWrapper,107] Successfully connected to VmiGetDiskSizesTask::task\{2}

[2007-01-15 13:10:13.019 '\[imageProcessingTaskWrapper,799] Start managed object method for task VmiGetDiskSizesTask::task\{2}

[2007-01-15 13:10:13.019 '\[imageProcessingTaskWrapper,429] Waiting for updates from VmiGetDiskSizesTask::task\{2}

[2007-01-15 13:10:13.019 '\[imageProcessingTaskWrapper,657] (Re)Start waiting for property updates from VmiGetDiskSizesTask::task\{2}

[2007-01-15 13:10:13.035 '\[imageProcessingTaskWrapper,738] Got an update from VmiGetDiskSizesTask::task\{2}

[2007-01-15 13:10:13.035 '\[imageProcessingTaskWrapper,429] Waiting for updates from VmiGetDiskSizesTask::task\{2}

[2007-01-15 13:10:13.035 '\[imageProcessingTaskWrapper,657] (Re)Start waiting for property updates from VmiGetDiskSizesTask::task\{2}

[2007-01-15 13:10:17.972 'IVmdbPipe2Impl operation completed with error: The pipe has been ended.

[2007-01-15 13:10:17.972 '\[imageProcessingTaskWrapper,738] Got an update from VmiGetDiskSizesTask::task\{2}

[2007-01-15 13:10:17.972 '\[imageProcessingTaskWrapper,753] Error while receiving an update from VmiGetDiskSizesTask::task\{2}: vmodl.fault.HostNotReachable

[2007-01-15 13:10:17.972 '\[imageProcessingTaskWrapper,504] Cleaning up remote task VmiGetDiskSizesTask::task\{2}

[2007-01-15 13:10:17.972 '\[imageProcessingTaskWrapper,865] Remote task VmiGetDiskSizesTask::task\{2} failed to complete: vmodl.fault.HostNotReachable

[2007-01-15 13:10:17.988 '\[imageProcessingTaskWrapper,1149] Connection to remote task VmiGetDiskSizesTask::task\{2} was lost - not cleaning up

[2007-01-15 13:10:17.988 '\[task,234] Task failed: P2VError UFA_LOST_CONNECTION()

[2007-01-15 13:10:17.988 '\[task,278] Transition from InProgress to Failure requested

[2007-01-15 13:10:17.988 '\[task,327] Transition succeeded

[2007-01-15 13:10:24.628 'Shutting down VMDB service...

[2007-01-15 13:10:24.628 'Unregistering callback...

[2007-01-15 13:10:24.628 '...done

[2007-01-15 13:10:25.347 '\[p2vSupport,141] Shutting down App

Tried to do a cold clone using the CD and UFAD keep dying and restarting.  Is this possibly a storage driver issue?  It is able to enumerate the drives during the Hot Clone wizard though.