This post is updated after co-blogger Hans Vredevoort contacted some of the storage folks in Microsoft to discuss the MPIO/cluster member initiators issue. It turns out that order list number 3 is not correct.

As a follow-up after releasing the Microsoft iSCSI Software Target 3.3 Microsoft has released an support article specifing the limits.

Supported and tested Microsoft iSCSI Software Target 3.3 limits

This topic provides the supported and tested Microsoft iSCSI Software Target 3.3
limits. The following tables display the tested limits and the enforced limits
where applicable.In addition, the following limits apply:

  1. You should not use network adapter teaming with Microsoft iSCSI Software
    Target 3.3 for iSCSI communication.
  2. If you plan to use multiple network adapters for iSCSI communication, you
    should separate them into their own subnets, set up virtual IP addresses, and
    then implement MPIO.
  3. MPIO is not supported for iSCSI initiators when used in conjunction with
    Microsoft iSCSI Software Target if the initiators are part of a failover
    cluster.

Aidan Finn has written a white paper about using Microsoft iSCSI Software Target 3.3 and also posted a blog about the confusion created by KB2535811.