Hey kastir
I have already tried the solution that you suggested. The iSCSI LUN contains partition of unknown type. So I need not to change the partition type. The partition type of local disk(on which ESXi is installed) is GPT, which is by default in ESXi 5.0
We need to change the partition type of the iSCSI LUN in case it is GPT, but it is not so in my case.
But still I am getting the datastore creation error.