I think I found the source of the problem... for some reason traffic will not leave the VMKernel adapter. Very odd... If I add another service console on to the network adapter that has vmnic2 i can then get to the DSS box.
We did a tcpdump to watch the traffic and the traffic is coming from the service console IP and not the vmkernel IP. Really messed up.
We're ripping exp 3.5 off of that vmhost and loading up 4 now to see how it behaves.
Thanks. Sorry for wasting time...
Mike