Hi Paul -
Ok so that far I'm following you. So addressing this on two fronts:
1. What capabilities do you need from a true Windows file server that you can't get from NetApp storage presenting the share? I'm curious only because until you get really down into the weeds there is little that you can't do from both (but there are a few things depending on your version of OnTap).
2. The meatier discussion. As I mentioned before, if you want to share data from FSERVER, you have to present something that looks like a disk to the VM. That means creating either a VMDK on an ESX datastore (LUN or NFS attached to the ESX host) or creating a LUN on storage that is presented as an Raw Device Map (RDM) disk through ESX. For all intents the RDM mechanism is the same affect as the standard VMDK, but it also takes a minimum of two LUNs to create - one to hold the VM and the RDM link file, and one to be "the disk".
The upshot of #2 is this - if you already have a share presented from the NetApp, there is no way to directly convert the share or to present that to ESX in a way that will allow an FSERVER VM to share it again. Unless you need something really special from OnTap (some sort of direct snapshot control or cloning or something you can't easily do from ESX directly or from ESX with VSC for instance) there is no advantage to using an RDM - create a new VMDK, attach it to the FSERVER VM, and copy the data from where it is to the FSERVER VM. Even if you did go the RDM route, you are still making a new copy of the NetApp shared data.
Hope this helps
Bob Greenwald
Lead Storage Engineer, Consilio LLC
NCIE SAN, Data Protection
Kudos and accepted solutions are always appreciated