Here are the two targets that I set up on the NAS.
You now need to set up the initiator to see this target in the operating system that you want to use with the NAS . I failed to get this to work as my WHS2011 is running in VMWare Server, which does not support ISCSI discs, so I can’t show you that, but the setup process is pretty easy. This document from QNAP shows the setup process for Hyper-V and Server 2008. As you can see, the process is pretty straightforward.
Conclusion
QNAP’s TurboNAS 3.5 software supports very easy setup of ISCSI targets. This means that you can use a QNAP Turbo NAS as a storage solution for multiple servers as long as they support virtualization of storage. At $799 diskless from Amazon.com, it’s clear that this is a very cost-efficient solution to your server storage needs. If you implement a virtualization solution that supports ISCSI, such as VMWare Workstation or VirtualBox, you could put a NAS onto your network and use a small box for your home server, separating the storage solution from the server solution. That’s powerful!
A special thanks to our own John Keller (AKA ITBeast) for his advice on how to configure the ISCSI initiator setup in a virtual environment. In addition, thanks to QNAP for lending me the TS-459 Pro+ Turbo NAS that I used for this post!
QNAP Turbo NAS v3.5 Overview QNAP Installation Document Amazon Listing

Hey Jim,
I just wanted to say great job on that article. I love the research and detail you put into especially with the snapshots.
Also thanks for the acknowledgement, I appreciate the sentiment.
John