Microsoft has an article available regarding Virtual Server 2005 R2 and iSCSI. I've been digging around on the forums and it seems the only way to really get the performance out of this is by having the iSCSI storage on the actual host machine. I haven't played with it, don't know enough about it but I do know iSCSI is way cool and I'm dying to play with it. Here's the link: http://www.microsoft.com/downloads/details.aspx?FamilyID=d112aa63-a51e-4722-a41b-98b3ab3700a3&displaylang=en