I'm busy setting up a cluster just for file-serving on vmware that needs to serve about 300Gb to 150-200 users as a replacement for a single physical machine that is running out of disk space..

These files are mostly tiny word files and the occasional application that gets started from here. Not a lot of traffic other then during the backup.
I'm trying to determine what would be better, a 500gb vmdk that is on an iscsi san connected to vmware or mounting the same iscsi target on the virtual server.

On a side note, there's still a change I might just get 2 el-cheapo servers and use those for a cluster as SLES has more quirks on vmware then on physical hardware.