I am running ESX 4.1 with connecitons to both an AX150 fiber SAN and an Openfiler iSCSI SAN. All NIC's are 1Gb. When I try installing a VM on either Fiber or iSCSI directly (instead of on local disk first then moving it to the SAN), I get errors. The iSCSI network connection eventually starts freaking out part way through the install, at which point my continuous pings start dropping to 50% successful, which causes the VM install to fail.
When I try installing directly to the Fiber SAN, it gets down to about 7 minutes left on Windows 2003 Server and gives me the error: Windows was unable to save all the data for the file C:\Windows\System32\setupapi.dll. The data has been lost. This error may be caused by a failure of your computer hardware or network connection. Please try to save this file elsewhere.
So this leads to my question: Is it always best to install a VM on the local disk then move it to the SAN, or should it not normally matter? Note that after installing on local disk and moving to iSCSI, VM works fine.