No you can not svmotion from the local storage of one server to the local storage of another server. SVMotion is only possible by one host, this host has to have access to both storages.
As MZ1 pointed out svmotion the vm does not change ESX server -
only VMware Converter or a Cold Migration would be possible when going from local to local.
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In addition to what the others have said... If you had shared storage, then you might have been able to use the quick migration script here:
With ESX3i U3 now not being restricted anymore, this could become a really interesting option.
Visit the new VMware developers wiki at http://www.vi-toolkit.com
In theory, (this is from a tangent brainstorm idea, and assuming you had a lot of local storage available) what's stopping someone from creating a VM on either host running an NFS share large enough to hold the VM that needs to be moved, mount the NFS storage on both hosts, storage vMotion to the NFS share, vMotion to the new host, then storage vMotion to the new local storage. Yes it's circular and I'm sure it's slow, but in a pinch, is there any reason it wouldn't work?
Sorry to bring up an ancient thread, but it came up in my quick search.
Of course, I could just test it...