FreeNAS is even worse as iSCSI solution than, OpenFiler. I would you recommend to use any other software target - StarWind, Datacore, Lefthand, etc...
TimPhillips , Thanks for that I will give it a try. Again this is just for testing for one VM and 2 hosts. I had it working great in ESX 3.5. I think when I added the second HD to the free nas VM that it's not compatible with ESXi 4 as I have a third Host with ESXi 3.5 (on it in my other data center in Vsphere) and it picked it up fine. Is there a legacy setting to check? Thanks again for your help and let me know what you thing as far as this is concerned.
You may want to try Opensolaris as well, it works very well with ESX/ESXi, even supports SCSI-3 persistent reservation which almost all opensource iSCSI implementations lack. The downside is that it requires good hardware to run well, suck as 64bit CPU, lots of ram, good controller (not those crappy VIA, jmicron, etc.). It doesn't have web based management, but they have good documents.
I use opensolaris as my storage server for my test lab with NFS, iSCSI and FC.