I know Vmware don't explicitly support SQL mirroring but it should work. I have a mirrored database but when the DB fails over, VCenter slowly dies and attempting to restart the services results in failures. I know the DB is ok because if I change the DNS alias to point to the recovered DB instance, everything works.
What needs to be setup? All I have done is use a SQL NAtive Driver 64-bit ODBC connection and entered the details for the mirrored instance. Does something else need to be configured?