The vCO appliance's OVF file contains only a reference to VMDK file, so when deploying the OVF the deployer has to locate VMDK file somehow. If you have downloaded OVF file locally (in your case, in C:\orchestrator\ directory), OVF deployer will search for referenced VMDK file also locally in the same directory.
You have 2 options:
- Try to deploy the OVF file specifying the URL where you downloaded it from in 'Deploy OVF template' wizard. This way, VMDK reference will be resolved from the same remote URL.
- Download all appliance files (not only OVF file) locally in the same folder. This way, VMDK reference will be resolved from the same local folder. (I have never tried to deploy local OVF so I may be wrong here).
Hope this helps,
Ilian