We to start off I'm not sure if I fully understand iSCSI, we currently use a lot of FiberChannel devices so I get that part.

Here is what I am wanting to do, tell me if I'm on the right track if this will work - or is this just a crazy idea?

Site"A" will have the Server which will host the iSCSI device, but the iSCSI device will be in Site"B" connected with a T1 or better. So far I think I'm doing ok.
But now I want the users in Site"B" to login to the Server in Site"A" and use the iSCSI volume for lets say there home/shared folders. After the login will the network traffic go from the workstation directly to the SAN or will it go accross the WAN everytime to the server then back to the SAN?