Well, answered my own questions :-). Actually pretty straightforward, simply install and configure VCO on each node. Using Failover Cluster Manager, create an empty Application, then add the VCO 'VMwareOrchestrator/ VMOConfiguration' services into MSCS as generic services. Set the services to Manual so the Cluster will control starting them during failover. Moving services back and forth between nodes works great. This was done using W2K8 R2/File Node Majority clustering. You can tune the various Cluster parameters as desired.
Don't know how common this will be for folks, but we have a requirement to cluster anything deemed as 'critical' within our infrastructure, so had to perform this as well as Clustering VC (Much more involved), so figured I pass it along. Both nodes do run within VM's too.
Wondering if anyone has been successful in doing this using an MSCS approach similar to clustering VC 4.0. We have a request to implement using MSCS, I realize it's not supported officially, but....thanks!