How do I import OSM files into ArcMap? How do I install Data Interoperability extension into trial version of ArcMap? The ArcGIS Administrator program said that extension is authorized but not installed.
Did you do a full install? It defaults to all extensions I think.
Last time I looked, OSM gave you the opportunity to download the data as shapefiles. Then you don't need to convert anything.
Maybe OSM is directly readable anyway, see here :
http://blogs.esri.com/esri/arcgis/2011/06/06/arcgis-editor-for-openstreetmap/