Sysinterals recently released a free P2V. The comparison table below is for your reference to help highlight the difference in features and functionality between the two. The table is not meant to pin one tool against the other (i.e. who is better). The free tool is not meant to compete against VMM P2V. The free tool does however address the following gaps:

1.       Support technician that needs to capture a VM from a physical machine for troubleshooting purposes (VMM is not deployed)

2.       Customers that do not want deploy VMM just for P2V or pay for another product

3.       End-user converting their own desktop to VMs without requiring a server admin

 *Table updated to reflect features in v1.62 of Disk2VHD

Features VMM P2V  Sysinternals Disk2vhd 
Disable services offline after conversion Yes No
Disable drivers offline after conversion Yes No
Offline P2V support (uses WINPE) Yes No
Operating system re-configuration (install IDE driver, fix up HAL, fixup boot) Yes Yes
Automation through scripting Yes (POSH) Yes(Command shell)
Job progress and job audit Yes No (can code something in POSH for job progress)
Supports remote execution Yes No
Supports no user interaction on source  Yes No 
Enhanced placement technology to know which host  to place the VM workload on Yes No
Carry over network configuration from source NICs (static IP)  Yes No
Skip copy of empty space on source to improve transfer time Yes Yes
Uses VSS for online P2V Yes Yes
Supports BITS for transferring files (both online and offline) - secure, re-start Yes No
Support streaming of data between the source and destination Yes No
Support disk size expansion Yes No
Automatically install Integration Services Yes No
Support W2KSP4 Yes No
Support client and server OS - XP, W2K3, Vista, W2K8, Win7, W2K8 R2 Yes Yes
Automatic creation of VM as part of conversion Yes No
Free No Yes
Requires Management Tool (additional infrastructure) No Yes
End-user standalone interface No Yes