Loopback iSCSI targets (aka, Target Error on iSCSI Initiator)

Enable the following registry key:

http://blogs.technet.com/b/csstwplatform/archive/2012/02/09/windows-svr-2008-r2-iscsi-initiator-getting-quot-target-error-quot-message-when-attempting-to-connect-to-iscsi-target-on-localhost.aspx

HKLM\Software\Microsoft\iSCSI Target

Value Name: AllowLoopBack

Type: REG_DWORD

Value: 1 (Default is 0)

This will enable you to connect to your iSCSI target.