Question : P2V to VMware Virtual server (free version)

I would like to know what the best way to convert a physical machine to virtual and host it on VMware virtual server (free version).

We do not have the luxuxry at the moment to have ESX.

Do we go the traditional route of P2V using VMware converter?

Answer : P2V to VMware Virtual server (free version)

I think you are on the correct track. You can use the free VMware convertor...
http://www.vmware.com/products/converter/