I think I found the answer here:
https://supportforums.cisco.com/thread/2109934
It would appear that locating the VSM on an in-band VEM is okay, provided the necessary system vlans are nominated.
My plan is 8 vNICs:
2 for mgmt, 2 for vMotion, 2 for NFS and 2 for VMs, with 4 lots of MAC Pinning.
I'll be using boot from SAN with an option for SCSI datastores, so I need to QoS tag at the vNIC level to protect the FCoE traffic.
System VLANs: Mgmt, NFS, Control (using L3 Mode).
Are there any catches to this config? What did I miss?
Thanks,
Ham.