You can do a "move" of the VM from vCenter into a vApp but it will do a copy into a vApp Template.
I manually exported VM Templates, Library, and needed configs out of Lab Manager to a LUN accessable to both our vC4 for LM and vC5 for VCD. This way I didn't have to do another copy. We then used PowerCLI to scripts to create new vApps, add the VM's, setup networking (as we us vApp Internal Networks), start, upgrade VMware tools, stop, upgrade VM Hardware, start, stop, capture to Catalog, delete original vApp, consolidate VMDK's for VM's in vApp Template.
You could do the same thing with VCO if you are good at working with it.
It's a long script and it worked for about 70% of our stuff we needed to migrate. (about 90 VM's)
Eric
