Use the Block IO as we certified with VMware EXS 4.0 with Block IO and the message will be removed from the GUI in the next release, File IO as stated on the link is adding a file
system layer and best to use Block IO as we certified it with VMware.
use block i/o for iscsi if you want to be able to use the volume replication & automatic failover features of open-e, file i/o initialisation is not necesary and the difference in performance is very small