Hello ,
Yes you can use P2V with SCVMM. Your Windows 2003 server meet the requirements for P2V.
Converting Physical Computers to Virtual Machines in VMM (P2V Conversions)
http://technet.microsoft.com/en-us/library/bb963740.aspx
Or you can use Disk2vhd.
http://technet.microsoft.com/en-us/sysinternals/ee656415
Sincerely,
Murat Demirkiran
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