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I have been running ESXi on 6 Dell 1950 servers for over a year now. Running vSphere, they are all clustered with failover, and use a Dell MD-300 fiber-san. I am impressed at the performance and detailed integration that VMware has provided. The only problem I ever had was setting up the vCenter Server, which you HAVE to run on a Windows VM, but it adds extended capabilities so it is worth it.
I did spend a little bit of money on the licenses, but its a lifetime license, and it is worth it for all the features that vCenter and ESXi servers provide.
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