It's no different than setting up AVVI for ESX3.x. Same steps.
VCB must be installed to a win2k3 SP2 machine. For simplicity the media server is easiest, but not required.
You must turn off in diskpart, the automount feature.. You know when you put a new HDD in a server, disk manager wants to write a signature to the new disk?
You must present the LUN's to the VCB proxy, that is your datastore. You dont have to do anything on the windows side. dont give it a drive letter, nothing.
You must have a 1:1 ratio if not more for your backup of the VMDK's.
Snapshots are taken by VCB, copied to a folder, and BE then backs up the contents of that snapshot folder.
This is all moot as BE is getting an update and vSphere will be fully supported... Woohoo, no more VCB!!!!!