A. Aside from Windows Storage Server 2003, which has iSCSI target built-in, there are a few third-party software solutions that run on Windows.
For my testing I use a great solution called StarWind from Rocket Division Software. It runs on Windows XP, Windows 2003, Windows Vista and Windows Server 2008, and allows easy iSCSI target configuration. You can configure physical drives or virtual disk files as iSCSI targets. There are four versions of StarWind—Personal, Server, Professional, and Enterprise. The Personal version is free. The other versions are available through licenses.