I was trying this out in my lab some time back and I too ran into the similar situation. check this http://forum.gotzu.com/showthread.php?tid=76
I figured out the way to decieve both host by configuring multiple IPs to iSCSI network adaptor. Then while adding iSCSI target to two hosts assign one IP for one host and second IP for the second host. iSCSI initiator etc. will remain same. Try this if it is helpful.