iSCSI, Windows 2003, SANSurfer, and VDS

So I have a site with two servers having identical problems, a iSCSI volume will not initialize in Window's Disk Management utility (or create a partition in DiskPart).

In the GUI Disk Management, I get the error "Logical Disk Manager: The operation did not complete. Check the System Event Log for more information on the error." In DiskPart, I get the error "The disk management services could not complete the operation." The event log doesn't have an error directly explaining these errors, but sometimes I'll get an Application Error 1004, mentioning vds.exe (Virtual Disk Service) faulted. Google and multiple forum searches don't yield much result.

A little about the setup. I have an IBM DS3300 iSCSI SAN attaching LUNs to two Dell PowerEdge 1950s via a Qlogic QLE4062c cards, using SANSurfer software. (They're not sharing a LUN, each server gets a different one).

So I won't bore you too much, I'll leave out the majority of my troubleshooting and homicidal hatred towards these two systems and just give you the answer (or at least the answer that worked for me).

Turns out that the issue lies in the Virtual Disk Service, which Microsoft has a hotfix for here: Article ID: 948699. Once I installed the fix and rebooted I was able to initialize the disk, format, label, and use.