This is a daunting task. At least, it is until you figure out how to do it. Once you've got the steps, it's quite simple, and relatively quick.
We'll be importing a physical Linux (CENTOS 5) server -- using IDE drives -- into a VMWare VirtualCenter-managed host. So immediately, one thing needs to be made clear: the tools we're using in this exercise aren't free. There are a variety of tools out there that are free, and I may get around to exploring those for this situation, as well. In the mean time, however, we're talking about VMWare Enterprise Converter 4 (v3 works, as well), which isn't available (yet, anyway) without cost.
So enough of the fine print: let's get to it.