No problem, I've done this migration for thousands of virtual machines.
Create your VDS object, uplinks, and port groups. Add the hosts to the VDS
with half of the uplinks, leaving the other half on the 1000v. Migrate the
VM and VMk networking to VDS, and then move the remaining uplinks.
You delete the 1000v switch object from the 1000v CLI before you break the
SVS connection. Dont destroy the VSM until you have deleted the object.
Pretty sure I have a blog post on it in the 1000v section of my site.
