I have got my ESX 3.5 server to connect via iSCSI.

So here is what I did.

DSS-Lite

Create the iSCSI target

Make sure that your lun is not set to zero. ESX does not like lun0.

You need to initialize the volume. You can not do this with ESX. So I connected a Vista Workstation to the iSCSI target and went to storage manager and initialize the volume.
Do not format the volume.

Now you should be able to connect the ESX server.

If you have any problem please post them.

Thanks