Hey there,
I am no way a linux orientated but I thought I'd post the process I used to convert this Image to Microsoft Virtual Server.
Download the conversion tool from http://vmtoolkit.com/files/folders/converters/entry8.aspx
Run the conversion tool over the Virtual Harddrive.
Then create a New Virtual Machine and mount the converted drive.
Start it up and follow the instructions in the SVASM Readme.
Now we neet to remove the VMware Tools.
Use the following commands to remove the VMware Tools
rpm -qa | grep VMWare
rpm -e <VM-Ware Tools Version>
Now you need to Obtain the VMAdditionsForLinux.msi which you can get from here http://www.microsoft.com/windowsserversystem/virtualserver/evaluation/linuxguestsupport/default.mspx
Mount that in the Virual machine and get back into the SVASM command shell.
Use the following command to mount the CD rom in Linux
mount -t iso9660 -o ro /dev/cdrom /media/cdrom
cd /media/cdrom
Now we need to install the Kernel Sources.
uname -r
yum install kernel-devel-<Version Number>
Eg. yum install kernel-devel-2.6.9-42.EL
Once thats downloaded and installed you need to install the Microsoft Virtual Machine Additions.
rpm -ivh vmadd-full-0.0.1-1.i386.rpm --force
If all went well we can start the Service.
service vmadd start
Hope this helps!