If I were to summarize the way HA works, am I correct by saying:
You have one SAN with 2 or more VM Host's connected to it. The VM's are stored on the SAN. If one of the VM Hosts goes down, another VM Host detects it and brings it's virtual machines back up.
Yes, that's basically it. see http://www.yellow-bricks.com/vmware-high-availability-deepdiv/ for more info on HA
André
here is a video of HA in action @ http://www.youtube.com/watch?v=iruACplfHC4
HA as some "agent" on each hosts, so can works without vCenter Server (for this reason you can run vCenter in a VM without big issues).
HA can do several things:
Note that there is no storage failure detection, HA works with networking-based tests (for hosts detection).
See also Duncan Epping articles and/or the "HA and DRS Deepdive" book (http://frankdenneman.nl/2010/08/vsphere-4-1-ha-and-drs-deepdive-book/)
PS: thread moved to the proper forum area.
Andre