a file I/O error has occurred while accessing vmware converter

While converting physical Windows 7 machine to Virtual machine of infrastructure type, I got this error. The error seems it is unable to read/write source or destination datastore.

I have installed VMware-converter-en-6.2.0-8466193 on Windows 7 physical machine with option locally selected. (not at server/client option)

All of my ESXi servers are connected to the vCenter Server, so I had to use vCenter Server's IP address to send this physical machine to the virtual world.

The issue i found was with the dns resolution to the vCenter Server's hostname. Since I am not using the same dns server on the Windows 7 client machine. So I updated the host entries manually for the vCenter Server's hosname to it IP address.

After adding dns eteries to the hostfile of windows 7, I am not getting this "a file I/O error has occurred while accessing vmware converter" and the migration has started.