Sorry I missed you were running MEM 1.1.2. That sets the login timeout automatically for ESX. The DiskTimeOut values still need to be set in the VMs though.
Also, 6.0.4 will be released soon. I would wait to upgrade to that over 6.0.2.
Other things to do is disable DelayedACK and Large Recieve Offload in ESX
Solution Title HOWTO: Disable Large Receive Offload (LRO) in ESX v4/v5
Solution Details Within VMware, the following command will query the current LRO value.
# esxcfg-advcfg -g /Net/TcpipDefLROEnabled
To set the LRO value to zero (disabled):
# esxcfg-advcfg -s 0 /Net/TcpipDefLROEnabled
NOTE: a server reboot is required.
Lastly, if you have mulitple VMDKs (or RDMs) then create additional Virtual SCSI controllers in each VM, (up to 4 max per VM), to increase performance. Especially true with applications like SQL, Exchange, Sharepoint, etc...
For your VMs that have more active I/O you can also try the "Paravirtual SCSI adapter" on your data VMDKs (or RDMs)
Regards,
Don