I REALLLLLLLLLLY HATE TH'S LOGIN IMPLEMENTATION! WHEN I POST A MESSAGE NOT LOGGED IN THE BROWSER STALLS AND I HAVE TO RETYPE THE ENTIRE EFFING MESSAGE!!!!!!!!!!!!!!!!!!!!!!!!
Having said that, Sub Mesa, dude, first, thanks so much for your informative advice. The dilemma is first, whether or not new hardware is needed, and second, what that hardware will be. I think I'll take your advice, and put the WD EADS10 aside for the server. I'll use the 750GB along with an x-25M 80gb that I've got my eye on in my gaming PC. For the server, I'm leaning towards raid 5 for a number of reasons. First, if I understand correctly, having two separate volumes (while not only being limited to only two drives space, and no way of recovering data lost on one of them) leaves me no way to simultanously access files on both drives, other than windows 7 libraries. RAID 01 would be nice, but the array ends up being 1/2 of the total size. Also I attach a stigma to implementing two levels of raid simultaneously, first a striping of two volumes, second a mirroring of those same two volumes. (BTW could I stripe 2 1TB and mirror on a 2TB in a raid 10 or 01 config?) So I think I'll go with raid 5, also on a freeNAS OS as you suggested, as the more reliable RAID is a great deal sweetener. Also I've used Ubuntu 8.04 for a while, and I was happy with it, but 7 came out and I've been on that since. I really dont care what OS is on the server as long as I can access files on it from the other two PCs. So does this all sound good to you?
-Buy LOW TDP! AMD processor and MB combo from newegg which has raid 5 support in Free NAS.
-Buy 3 more WD EADS10 to add to my one for a 3TB RAID 5 Array.
-(off-topic) Buy an x-25M 80GB SSD for the Gaming rig and put the 750GB WD green in there
-Put FreeNAS on the server and rig up the array, and I'm set to go.