Same host, same vlan (standard or distributed, doesn't matter) I believe shouldn't go outside the host. You'll be able to test it by transferring a large file between two vms on the same standard ...
Taking the linked management capabilities of vCenter further, VSphere 4 also offers what they term the vNetwork Distributed Switch. Previously for an ESX server a virtual network switch was ...
I've got a vSphere cluster setup with vCenter as a VM running on the cluster. From what I've read, if I lose the p-host running the vCenter VM, I also lose vMotion, vMotion Storage, DRS, etc until ...
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