Veeam 6 backups through iSCSI not working,

[Sord]

Some background, we've vSphere 5 Essentials plus and Veeam 6, all machines are VMs (including the Veeam server) running on the cluster, when backups are running only the Veeam VM can be backed up (by itself) through iSCSI, the rest fall back to LAN mode as per:
"
Unable to establish direct connection to the shared storage (SAN). Please ensure that: - HBA is properly installed in the Veeam Backup server computer, or software iSCSI initiator is configured correctly. - SAN volume can be seen by operating system in the Windows Disk Management snap-in on the Veeam Backup server. - Read access is allowed for the Veeam Backup server computer on the corresponding LUN (refer to your SAN documentation).
Direct SAN connection is not available, failing over to network mode...
"

I've the software initiator and all VMs have an iSCSI nic that can ping the ibm DS3500 SAN iscsi ports.
Please advise.

[Gostev]

Please read the sticky FAQ topic for detailed information on how to setup direct SAN connection. If you still have questions after that, please search the forum for this error, and continue posting in the existing discussion. This thread is now locked as duplicate.