Question : What are all the possible options for virtualizing a physical server that is presently attached to a SAN and used for storing data?

Experts: I am in the process of putting a list together of servers that can be virtualized in my data center and there are three servers that I am hoping would be good candidates however they are used for storing data and are attached to an EMC Clarion SAN via fiber channel. The C partition is local to the servers and the other partitions are on the SAN. With that being said, can these servers be virtualized? What are best practices for doing this? If let's say the D and E partitions are 500 Gig each and utilizing SAN space, would I do a P2V and have the virtual machine live on the SAN? How can this be done if I have my LUN's carved out to allocate a certain amount of space for Virtual Machines, a certain amount of space for MS Exchange, a certain amount of space for SQL, and a certain amount of space used for physical storage.  

Answer : What are all the possible options for virtualizing a physical server that is presently attached to a SAN and used for storing data?

If you are using ESX to virtualise, the you can use VM Convertor to swing the C: over to a virtual machine, and then use RDM (http://vmzare.wordpress.com/2007/02/19/vmware-raw-device-mappingrdm/) to map the existing SAN LUN's into the VM. You would end up with almost exatcly what you have now, except all LUN's would be exported to only the ESX host servers which then pass it up to the relevant VM's.