Kevin - It depends somewhat on the number of servers you are virtualizing and the management functionality you want. Here are the basics:
An ESX3i license will give you single server partitioning. You will manage that server on a 1:1 basis with the VI Client, a windows GUI. This will allow you to create and view your virtual machines including accessing their consoles remotely. If you have more than one host, you will only be able to connect to one at a time.
A VI Foundation license plus VC Foundation will allow you manage multiple ESX3i servers from a single interface. You will see all the physical servers and virtual machines associated with those hosts. You will also be able to: create templates and clone VMs which can be a great time saver in deploying new machines, automatically apply patches to Windows VMs and the ESXi hosts with Update Manager, and use Consolidated Backup with your 3rd party backup software to backup VMs or VM data (this last assumes shared storage). VC Foundation manages up to 3 ESXi hosts.
By contrast, a VI Enterprise license plus VC Foundation plus shared storage (NAS, iSCSI, FC) gives you access to live migration (VMotion + Storage VMotion), high availability, and resource management (DRS).