Here is a cheap way of building an VMware ESX and Virtual Center development / demo environment with iSCSI which includes all the Virtual Center high availability functions, including HA, DRS and VCB. You will need to following to build this environment:

1.  2 x VMware ESX servers (obviously:)
2. 1 x Windows 2003 Server (with a fair amount of storage)
3. A valid license from VMware or an eval license for VMware’s Virtual Infrastructure 3.

The following procedure assumes that you have 2 ESX servers built already or have the ability to do so, and that Virtual Center is up and ready.Setting up a Windows 2003 Server as a software iSCSI target.  First, you will need the iSCSI components which comes with ‘Windows Unified Storage Server’ embedded OS.