We want to setup an MD3000i for the VM storage which won't be a problem. Just setup an iSCSI initiater and setup windows 2008 R2 hyper-v to use that to boot the VM's.

What I want to avoid is buying hard drives for the blades since they won't really need any local storage to speak of. I would hate to have 72GB or even 36GB 10k rpm SAS drives be wasted to only contain a few GB's for the hyper-v install.

Is there a way to some how embed the windows R2 hypervisor into the blades using an 8GB+ compact flash drive or something, such that we don't have to have hard drives inside the blades.