Guys-
Thanks for the advice. I have been so unsure about iSCSI because of performance. I am virtualizing a core sql server and possibly two small Exchange servers (front end and public folders). From what I have read these should have no problem running over iSCSI. (i am hoping) I know with ESXi 4.0 you can use MPIO and use two links for 2GB throughput, the MD3000i can handle that correct?
As far as my configuration goes, I going to configure the iSCSI network to be completely separate from my internal network, I am just going to have two Dell 5424 24 port switches standalone for direct connection to the iSCSI box. I definitly think going iSCSi is going to be the best bet, because when I want to add more servers to my cluster (HA) I can, as with the DAS solution I will only be able to add two more for a total of four servers. There is no way I will be able to use 3.5TB of data between four boxes, I just get worried about the throughput and performance when you add more servers to the iSCSI box.
Its interesting you mention tha IBM boxt, I just got a quote from my Dell rep for two R710s and an MD3000i and two switches and I couldnt believe the price of the 3000i, about two months ago I priced it out and it was $3000 cheaper!! I am going to say that I have another quote on another box and see what they can do, thanks for the advice.
As far as the SATA drives are concerned, the Dell rep told me to stick with the 300GB 15ks, what are your thoughts on that? I originally configured the box with 400GB 10ks, but he told me no after I said I will have a sql box on it, (again its a core sql box and does about 500-700 transactions seconds. Which isnt much for the main sql box, its a dual quad box with 6 15k drives and it sits at 10% CPU all day long, I know SQL is all disk and io though thats what made me concerned about iSCSi.