When trying to perform a live P2V migration of a SQL server running on Windows Server 2008 Enterprise R2, migration failed at 1% with an error message below:
FAILED: Unable to create a VSS snapshot of the source volume(s). Error code: 2147754766 (0x8004230E).
I was using VMware vCenter Converter Standalone server 5.0.1 build 875114.
Disabling UAC on the Windows Server, as suggested on VMware Communities forums, did not help.
Problem was caused by a Dell recovery partition on the physical server which was not NTFS. Deselecting this partition allowed the migration to go through successfully.