VMware Converter 4.0.1 standalone fail at 1% with error: method.Summary

The Solution is taken from Vmware Knowledge Base,
When converting a Linux source to an ESX 4.1 host, VMware Converter 4.0.1 Standalone fails at 1% with the error: methodFault.Summary

 
Symptoms (Summary from Vmware KB)

• When converting a Linux source machine to an ESX 4.1 host, VMware Converter 4.0.1 Standalone fails
• The conversion fails continuously at 1%.
• You see the error:
  methodFault.Summary
• In the vmware-converter-agent.log file, located at C:\Documents and Settings\All Users\Application Data\VMware\VMware Converter Enterprise\Logs, you see the error:
  
  Failed to connect ISO to remote VM

Resolution (from  Vmware KB)
This issue occurs when using VMware Converter 4.0.1 Standalone with ESX 4.1 hosts because Converter Standalone version 4.0.1 is not compatible with vSphere 4.1.

To resolve the issue, try one of these options:

• Install the latest version of VMware Converter from the vCenter Server installation media and use this to convert to an ESX 4.1 target. VMware Converter 4.3 supports conversion to vSphere 4.1 environments.
• Convert the source machine to an ESX host running a lower version of ESX and then migrate the machine.

For more information, see the vCenter Converter 4.2 Standalone Release Notes.