I think we need some more information for solid recommendation. So far i got, that you will have only one storage box. In this case a SAN os would be a little overkill, because a simple NAS box would do the job. How many disks do you need? That's important for the raid config. For 5 - 8 disks i would go for a raid 5 or 6. Les waist of space and nearly the same redundancy. Oh, and sure the cheaper 7.2k sas or even sata 7/24 disks. Buy one more as spare for the saved money.
First the SAN will be the first step other should come later if everythong goes well.
For the number of disk well it of course depend on the price and so i think we maybe should take the question from another point of view. Which disk and RAID configuration should i need to build a SAN dedicated to virtualization with at least 2TB of space for under 1000$ of disks ?