I have been using SLES, which is Suse Enterprise Server 10.2 as a iSCSI host for VMware ESXi, for testing.
Here are the steps I used to set this up on a empty SAS disk array.
1. Open Yast
2. Tab to System
3. Tab to partitioner
4. Click yes
5. Tab to create and hit enter
6. Tab to do not format and select Linux LVM and hit enter
7. Tab to ok and hit enter
8. Tab to LVM and hit enter
9. Tab to volume group name and type in ISCSI tab to ok, and hit enter.
10. Tab to add volume and hit enter
11. Tab to next and hit enter
12. Tab to add and hit enter
13. Tab to do not format, and hit space bar
14. Tab to logical volume name, and type in ISCSIDisk, make sure Mount Point is blank.
15. Tab to next and hit enter
16. Write down the path of the Linux LVM
17. Tab to apply and hit enter
18. Tab to network services
19. Tab to ISCSI Target
20. Click ok to software install, and insert disk 1.
21. Tab to Service Start and Hit space bar to enable when booting.
22. Tab to targets, hit enter
23. Tab to delete, hit enter
24. Tab to add hit enter
25. Tab to add and hit enter
26. Tab to LUN and type a number not in use on EXSi Server, if you’re not sure then check.
27. Tab to path and type in the path you wrote down in step 16.
28. Tab to ok and hit enter
29. Tab to next and hit enter
30. Tab to next and hit enter
31. Tab to global and hit enter
32. Tab to finish and hit enter.
33. Hit enter to yes.
Then you can setup your ESXi server to point to this iSCSI host.