You are not limited to VHD. Right now I only have two iSCSI targets, 1 is a RAID6 array for my media and the other is a dedicate WD Black as my data drive on my development system.
I’ve been wanting to evaluate iSCSI Remote Boot so I can remove all the hard drives out of my bedroom HTPCs but I don’t want to test it until I get a managed switch and I can’t afford that right now.
In terms of VHD usage for recording….I did do that for a while and had no performance issues. I would only recommend it if with fixed VHDs and if your hardware supports VT-d (Intel) or AMD-Vi (AMD).
