Good move.. I need to go RAID but haven't yet. I've let it go Way too long. Now, a hunger for dime has left me with a big problem that is growing faster than drive capacities. My cases are full of drives and I need to go external.. It will be tough for me to migrate to raid. Save yourself before it is too late!
I've had bad luck with IBM and Seagate and now only use Western Digital (for the past 3-4 years). They also have Advanced warranty replacement (they ship the drive to you first) and it has worked well. Seagate did not offer that the last time I did an RMA with them (20 months ago).
Make sure you get OEM drives which include 3+ year warranties. Retail are now only 1, with an upgraded warranty costing around $15 (too much). Plan on monitoring your drives for health status (check drive temps and run offline diags every 6 months or so). Most of my drives report running below 30C and sit behind a fairly low speed 120mm case fan. Drive temps in regular cases are usually well over 40C.
I worry more about theft and fire/etc.. So that means some kind of off-site solution (at least for stuff that cannot be replaced).
I think raid 1 is overkill unless it includes good support for off-site storage... Maybe raid 5 at home (or no raid and automatic nightly snapshot backups?) and an external drive enclosure you store elsewhere and use to snapshot the home system once a month or quarter?
FWIW, I just yesterday ordered a 320 SATA western dig from monarch for $135 shipped.. And the order status shows that they upgraded my free ground fedex to 2 day. They've been beating newegg by quite a bit lately. SATA prices seem to have fallen below IDE for the larger drive sizes.
This is the best computer case I've found for having a lot of drives and keeping them cool. It will hold 5 3.5" drives comfortably behind a 120mm fan (not included) in a nice removable cage (plus 2 more if you use the floppy bays). I have 5 drives in two of these cases and most of them run below 30C:
http://www.newegg.com/Product/Product.asp?Item=11-129-152&depa=1