Yes it works, I did it with 6 2 TB drives on a perc 6i in a Dell T410. Keep in mind if you are using VMware direct/local dsk you have to divide the raid 5 volume into 2TB vdisk as that is the max vm will use as a datastore.
Thanks Tom_35 . Saves having to spend money without knowing the outcome. Any advice on SATA drives to use? I am looking to maximise storage space and keep costs down (SATA) but not at the expense of performance.