Virtualization best practices

Hello admins and gurus

I have a controversial topic: now we are investing in a new Linux OS that will hold our Sybase database. The server will virtualized on a VMware server hosted on SAN storage. Now the question is, when we install the database engine is it better - in terms of performance - to put the data files on a separate LUN and connect to it through fiber channel or to create a virtual disk and attach it "locally" to the virtual server as if it was one of it's disks and put the datafiles on it?
In other words, in a virtual word is it better to attach a virtual disk or to connect to a separate LUN provided that both of them are on SAN?

More software, how does that ever get faster I/O?