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This is helpful but I found another way which may be preferred for some people. Instead of converting the image I downloaded the iso image and uploaded it to the datastore on my ESXi4 server. Then I created a blank VM with a small HDD. In the machine config I pointed the CDROM to the datastore ISO and put a check mark in the “Connect at Power on.” option.
Boots to the cd everytime and is a quick and dirty way to get running. This does leave the Zeroshell core readonly though so you may have problems if you want to make changes to the installed packages.
Since I am testing VPN throughput and QoS functions it has been a fast easy way to test drive the distro.