VMWare over NFS has been quite the buzz over the past few months, especially when it comes to NetApp filers like the 3070c. I personally run VMWare over FC connected into a NetApp 3050c on hi-speed fiber channel drives. What I like about it is it's fast and it works well. It's really not that hard to setup and a denial of service attack on my IP network won't hurt my VM's access to the SAN.
With Fiber channel you have to create LUNs for the VMWare box to access. There are 2 schools of though here... either create 1 big LUN and run all your VM's from it - or - create a new LUN for each VM.
With NFS, things change. Apparently you can take advantage of de-duplication, no single disk I/O, and you can use VMDK thin provisioning. What I'd like to see is a good white paper on NFS vs Fiber Channel including setup instructions and why you would choose one over the other.