>therefore, since the actual data resides in one location, the point of failure would be the SAN.
correct
> should we use sql clustering along with mirroring?
well, SAN already does mirroing and striping
what you are trying to protect from is if the SAN box and/or the path between the nodes to the SAN box fails.
you will need redundant fibre channel connections for the second part.
for the SAN box to fail itself, you would indeed need a full failover to a second SAN would be required (aka disaster recovery scenario)
http://searchstorage.techtarget.com/expert/KnowledgebaseAnswer/0,289625,sid5_cid573587,00.html