Thanks for the responses - I also found the same results - creating a vault store at a mount point resulted in an error since there is a hidden O/S file created for the Mount Point to use, so the same method of creating the archive, then creating the mount point worked fine.
I found that deleting is the same case, it cannot remove this hidden file, so attempting to delete a vault store from the VAC will fail until you dismount the folder.
One side note, which scared me a little, is that I was using subfolders for testing c:\data\store1, etc. When I removed Archive 1, the program removed both the c:\data\store1 folder and the c:\data folder, which it did not create and was on the local disk. It was because it was empty, so there is something in the code to get rid of parent directories if they are empty. When I had another empty folder under c:\data, it left it intact.
The requirement is more for logical seperation than physical, so I altered our configuration to just present one volume from the iSCSI which I am now carving into seperate volumes from the O/S level and creating a mount point to each. This lets me only manage the mount points without having to worry about multiple iSCSI initiator logons.