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Cisco has their new iSCSI based SN5420 router. It requires an iSCSI driver on each host for access. Performance may be an issue for now using iSCSI until there are more NIC vendors incorporating the IP stack in hardware (called a TOE, or TCP/IP Offload Engine). Check this URL for more info on the implementation of iSCSI using the SN5420 router: http://www.cisco.com/univercd/cc/td/doc/product/sn5000/sn5420/swconfig/confsc.htm
iSCSI standards are still being implemented. Interoperability may be an issue for those implementing now. If you stay with a single vendor for now you should have good success. I would recommend iSCSI only for customers who have VERY robust networks in place. Switched Gigabit Ethernet is the minimum standard. Things will get much nicer for iSCSI when 10 Gigabit Ethernet and TOE engines are around.
Chris
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