Ok, this is a nice idea, but there are free tools which claim to do this also. Theres vmConverter from VMware, and disk2VHD from Microsoft. However these will only work with retail Windows XP installs. Will this work with OEM also? Otherwise, its a waste of $90.

And why bother with this at all, even if it can? Why can't you use xpMode and copy your files? If this is an old install, you'll probably be better off doing a fresh install of your programs anyhow.