This sounds like a problem with VMWare's conversion, rather than with the LDMG image. I have, however, successfully converted it into ESXi at one point (a few months back). I could try again if necessary. What details can you give other than that it "failed". That doesn't really give anything to go on.
Here's an article that might help (or it might not, once again I really don't know what the problem is):
Thanks for the reply Mach6...
The background on this issue is the following:
I've downloaded and extracted the demo virtual gateway from: http://download.landesk.com/product/8_8/ldmga-48v5.12.zip
I then attempted to use VMWare converter bld 3.0.3 bld 89816 to convert the VM into an Infrastructure Machine on ESX 3.x as follows:
Source Type: Other -> Vmware Workstation File
Upon clicking NEXT (After selecting the vmx file) i get this:
Warning: Cannot Configure the Source Image
But i am still able to continue with the process after clicking OK on that message.
Source Data: Convert All Disks and maintain size (only one disk with many partitions)
and so on..
The process seems to begin, but shortly after I receive a warning that the target host doesn't support the Guest OS
and finally the error: "Unable to open file %s"
I've looked into the vmx file and noticed that guestOS = "other26xlinux".
I've successfully powered on the image via VMWare Player...
Hope this helps