Here’s another great new KB article we published today. This one will tell you how to fix an issue where a P2V fails with error 8007001F:
A System Center Virtual Machine Manager 2008 (SCVMM) Physical to Virtual (P2V) conversion fails when attempting to mount a .VHD file, reporting that a device attached to the system is not functioning. The hex code is highly correlated with this issue.
VMM cannot complete the Hyper-V operation on the contoso10.com server because of the error: 'The system failed to mount 'C:\ClusterStorage\Volume3\NewSystem\C_2011-11-29T035848.vhd'. Error Code: A device attached to the system is not functioning.
(A device attached to the system is not functioning (0x8007001F))
This can occur if antivirus realtime scanning places a lock on the file in the error message, making it impossible for SCVMM to continue operations.
Modify the antivirus realtime scanning operations so that the file extensions and processes below are excluded. Perform this action on the SCVMM Server and all Hosts it manages.
To resolve this issue, configure the real-time scanning component within your antivirus software to exclude the following directories and files: