Daniel Petri offers up the following advice to help you with creating an affordable SAN like environment with iSCSI to get you on the road to using advanced ESX Server virtualization features.
Many of the VMware ESX Server advanced features cannot be used without a SAN (storage area network). Besides the high cost of the ESX Server software and the Virtual Infrastructure Suite, a SAN can be a huge barrier to using VMware ESX and features like VMotion, VMware High Availability (VMHA), and VMware Distributed Resource Scheduler (DRS). In this article, we take a look at how you can download a free open-source iSCSI server and use it as your SAN storage for VMware ESX and its advanced features.
Check out these great step by steps with included images, here.