Disk2vhd : WIN2K8 R2 P2V failure to boot VM

Hello forum,
I am trying to P2V a W2k8 R2 (Enterprise) machine with the purpose of booting from VHD on a new hardware.
The server to be converted is a PowerEdge R710 and the new host to be booted from VHD is HP ProLiant DL380 G7.

The server to be converted has the has local and network disks attached to it.

The local disk has three partitions . System Reserved , C Drive (OS) , and D drive Data on RAID 0 (SAS Drives).

At the moment I am trying to P2V (.VHD) only the local disk.

First thing I tried was to create a VHD by selecting all three partitions, but when I attached that VHD on a VM running on Hyper-V 2012R2 I got the "disk read error"

Went through diskpart recovery, bootrec, bcdedit without success.

For some reason disk part showed the system reserved and D partitions as RAW file system.

Then I created VHD with only system reserved and C: partitions and was able to start the VM but the VM boot straight into "recovery mode" trying to fix disk errors. When this finishes it pops a system recovery option diag box asking to login as admin but when I provide the password it fails.

 I tried :

1. bootrec /fixmbr    (Successful)
2. bootrec /fixboot   (Successful)
3. bootrec /scanos    (No windows detected.)

Diskpart detailed disk:

Vol 1   C:    System Reserved    NTFS    100 MB     Healthy

Vol 3   E:                                 RAW     100GB      Healthy.

Any thoughts?

Thanks.