I've been trough that message a couple of times before I managed to install 
windows 7,
eventually I managed to install using PXE chainloading, and WinPE 3.0, and did 
that many time over since.

have you added 'set keep-san 1' to the command sequence? (according to my 
experience, the disk still shows up without it! but not installable)

you can also try what I did, and boot without any local media: after iscsi 
fail, fallback to WinPE 3.0 via tftp. this might help, because gPXE will stay 
loaded.

it also helps to install to empty disk, and then create partition, make it 
active and assign it (just before installation).
if all else fail, try using another software target. (Microsoft iSCSI software 
target require that you use 'set gateway' to the server immediately after dhcp)

Tal
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