The conversion basically worked pretty well, with tiny glitch that I eventually resolved. Basically all you need is downloading VMware-converter-3.0.2u1-62456.exe (VMWare Converter 3.0.2 starter edition), install it, and then run it.
However, pay special attention that there are a few different version of VMWare format choices available on the menu. At first I didn't pay attention, pay the first one, and found that the VMWare Server 1.0.x didn't support it, so I have to reconvert again. But once it's done, it worked pretty fine. Network was working and such.
One more glitch though: the mouse was a bit crazy after I installed VMWare Tool. I had to use the keyboard to navigate through the Control Panel, and then eventually get to the hardware page. I deleted the current VMware mouse driver, reboot the VM, re-recognize the mouse driver, and then everything seems to work from there.