I did a Pre-migration installation of NW 6.5 on a new box w/ intentions of
migration an existing box w/ NW 5.1 w/ most recent SP on it. When I run the
migration wizard, it fails during the NDS file copy stage with error
message "Error copying SYS:SYSTEM\$HWNDS.BAK and to the SYS:
\SYSTEM\NUW30\NDSBU\$HWNDS.BAK." The error message also says that a device
is not functioning properly (not exact wording).

I can see the 00000000.$hw file in the folder on the source server's in the
path mentioned above.

Any ideas why this is happening?

I've also had error messages regarding not being able to copy sys:
system\etc\sms\smdr.cfg to sys:system\etc\sms\smdr.mig and sys:
\public\rootcert.der to sys:public\rootcert.der.bak on the "destination"
server but seem to have eliminated those errors.

I've done everything in the "Troubleshooting" section of the migration