When attempting to convert a Windows 2000 server sp4 to a VM using Microsoft VMM 2008 R2, I receive this message:

Unable to convert physical server. An internal agent error has occurred on COMM01.chicagotech.net.

Ensure that the P2V agent is installed on COMM01.chicagotech.net and that the P2V agent service is running, and then try the operation again.

ID: 3128

Details: Class not registered (0x80040154)

I have installed SP4 and all hotfixes Microsoft recommends. Any suggestions?

What we did is building a windows 2000 sp4 server on another computer. Restore it from ntbackup.  upgrade it to windows 2003 and convert it to vm.  Then upgrade the VM running on windows 2003 to 2008. It works. This link is the details what we did and troubleshooting:

Upgrade Windows 2000 SP4 to Windows 2008 SP2  - Step by step with screenshots