Question : NLB with 2 Windows 2003 Server Virtual Machines (VM) (500 points)

Greetings and salutations - I'm trying to configure NLB for 2 VMWare based Windows 2003 Servers.  For whatever reason, I'm getting all kinds of issues with the 2 servers seeing each other.  

Both VMs run Windows Server 2003 R2 Ent Edition Service Pack 2
Both VMs are in the same blade enclosure
Both VMs are on the same AD domain
Both VMs have 2 NICs (albeit virtual NICs, of course)

Some questions -

1) do the 2 NICs in a given VM have to be in different subnets OR do they need to be on the same subnet?

2) From what I'm being told it's not possible or inadvisable to have the 2 NICs in a given VM on the same subnet.

I set it up correctly once, but it didn't switch over when I brought one machine down.  I then deleted the NLB configuraiton, and re-set it up again.  So far, I've not been able to get it set-up again due to varying issues (one machine doesn't the the other, or vice versa).

Though I've set up NLB for physical servers in the past with no problems, I've never done it for Virtual Machines, much less VMs that are running in a blade enclosure.  

Last question -

3) Do you have any thoughts as to what may be causing the problem and if this (setting up NLB for 2 Virtual Win2k3 Servers each with 2 NICs and both on the same Blade enclosure) is even possible?

Thanks in advance!

Answer : NLB with 2 Windows 2003 Server Virtual Machines (VM) (500 points)

How are the nics leaving the blade, copper or fibre, trunk?
How you seen the article listed below from VMWare?

http://www.vmware.com/files/pdf/implmenting_ms_network_load_balancing.pdf