iSCSI Target software

We are investigating implementing an iSCSI based SAN using an HP DL360G5 with a DAS MSA60.

The unknown is currently iscsi targets, not iscsi initiators.  Our new boss is hardcore bent on moving from Novell products to a pure windows environment, but Windows iSCSI target(s) don't seem readily available and most information for them is at least 3 years old.

I've looked at Nimbus MySAN (currently outdated as it does not install on W2003 SP2 or W2008).  Windows "Unified Data" Storage Server is not available except through OEMs (something like an ML585 has it preloaded but that is way overkill for what we need).

I've looked at the IET implementation that has been included with SLES10 SP1.  I've successfully tested it and think it may be the way to go - but my concern is managability.  I'm the only one familiar with Linux on our team, and, it isn't MS windows.  I'm not a Linux expert by any means, but I do have a fair amount of knowledge for setting them up and troubleshooting them (various machines I've used for around 10 years).

The concerns I have are this:

Netware is out:  Despite being a pioneer in iSCSI, Netware's proven iSCSI target and initiator support in our environment, we're told "no more netware" (even by Novell).  Now I need a viable Linux or Windows replacement.

Managability - We'll need to be able to dynamically allocate space to the iSCSI disks.  I understand IET can either use file based storage (I didn't test this yet), direct device storage (like /dev/sdb), or virtual device storage through LVM.  I think file based storage would be easiest to manage, unless I'm mistaken?  My fear is that LVM might eat the NTFS partitions we'll be storing inside the iscsi targets.

Backups - A windows based target should be able to be compatible with VSS, allowing for easy backups.  Also a Windows file based target (such as the one in WUDSS) that uses .VHD's would be easy to manage.  What sort of options are available like this for Linux, specifically SLES?  We currently plan on implementing a D2D2T setup using Backup Exec 11d (or 12) for Windows, but own no Linux agents.  Thoughts?

iSCSI implementation - I checked the very scarce info on the IET wiki and see that much of it hasn't been updated in years.  Ardis, the original project, also seems dead.  Many of the windows targets seem dead too.  Is it just that people got a spec implemented right the first time and didn't have a need for any thing else?

Performance - we currently have several LeftHand Networks NSM150's that recently had horrible performance for most of the year.  It turns out after many months and bickering between Novell and LHN that LHN botched a driver.  After they performed an update on the boxes, performance got better (but not as good as it once was).  Any iSCSI implementation we do can't leave a sour taste in the mouths of the users (the users in this case will be central IT as we implement things like Exchange, Sharepoint, etc, as part of our move from Novell's Groupwise, Virtual office, and other products).

Thanks!