1. Put the (small) OS C: drive on iSCSI storage within XenServer
2. Mount the (large) data E: drive via iSCSI directly within Windows 2008 itself
It will work fine. However, I'm intruiged about whether one can create a completely diskless environment where some magic comes into play whereby "something" establishes a iSCSI connection to the virtual disk to be used for the C: drive? I'm rather groping in the dark here even for what to Google for

I'm guessing it's something akin to PXE boot to iSCSI? Am I barking up the right tree? There is not really complelling reason to do this as the "C: drive on XenServer storage" works fine.
Cheers, Rob.