I expirence this problem too, also and with a uBuntu 9.10, using vmware server 2.0, vmware server 2.0 only supports CIFS and not NFS (AFAIK) - altough the volume mounts fine, the VMHost are unable to open the vm since since it's larger than 2gb. How could this be an IE related problem since it's the VM SERVER host that opens the VM and not IE?
Also, I have for the time being dropped iSCSI since I after a few days expirenced a total blackout in the iSCSI volume and I never got in contact with it again and lost my VM's...
I wonder if the iSCSI implemenation in DS410j is reliable enough to actually use.
At least NFS allows you to access the share/data if mounting fails.
ESXi 4.0 supports NFS mounting.