From the attached logfile, I can see Error 503 and 19945. Enter 19945 in the search field of this forum and work through the various threads which discuss this topic.
Here is one for starters: http://www.symantec.com/business/support/index?page=content&id=TECH107435
There are also discussions about network speed, with one user finding that the problem lessens if they reduce network throughput.
I notice you have a trial version - something in the back of my mind is telling me that there is some limitation in the trial release.
Finally, why not use the VMWare converter - I have found that to convert physical machines to virtual machines very effectively and it's a free download from vmware.com