Now you can covert physical Machines to Virtual Machines with free VMware Converter 3.0 software.
From the product page:
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.
=> Disaster recovery : Clone and backup physical machines to virtual machines as part of your disaster recovery plan.
=> Ease of use : Quickly and reliably convert local and remote physical machines into virtual machines without any disruption or downtime.