SQL Server Data Drives & Clustering w/local disk drives?

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All:

I have a 6 yr old SQL2000 server running on Win2000. I have two brand
new HP DL380G5 servers that were ditched from another project which
have six 72 GB HDD's - two mirrored for the OS, and four RAID5'd for
the data for a total of 136GB.

I have access to two licenses of SQL2005 and two Win2003 Enterprise
Edition licenses.

I do not have access to a SAN.

I have been tasked with setting up these two machines so that the data
is mirrored, and preferably, given the hardware stated - automatic
failover.

Everything I have been reading so far states that for clustering,
automatic failover, and mirroring to properly work together, that it
is necessary to store all data that your machines will access need to
be stored on a SAN.

Is there any way around this, other than: http://support.microsoft.com/kb/304261
Specifically, is it possible to set up two machines to support
clustering/failover by using the local drives on each machine for
their data source?

Thanks

.

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