For anyone that needs to convert LiDAR data here are a set of tools that may be of interest:
libLAS - a c/C++ library for reading and writing ASPRS LAS files.
and to get the data into ArcGIS use the LAS to Multipoint tool in ArcGIS. Another useful tool is from VLS Software and it's called LIDAR Analyst. Lastly, you can also use LP360 from QCoherent.