Well - the move to RAID1 did NOT go smoothly. I inserted the new disk into the right bay and powered up. It recognized the drive and asked how to format it. I chose RAID1, the format began and after 2% or so I got error 112. Multiple tries could not get past error 112.
Finally I selected SKIP on the format and then went into TOOLS - RAID and selected RAID1. The format began and completed successfully. Of course it formated BOTH drives and I lost all data. I had backed up the important stuff - PC Backups, Music and Videos I didn't want to loose. All in all I lost about a 1/2 of ripped DVDs that can be ripped again if needed. Probably worked as a good cleanup for things I didn't really need. I restored from backup and then ran fresh backups from my other PCs just to be certain they were covered on the NAS. I also have a Home Theater PC with several gig internal and use Carbonate to store the important stuff in the cloud.
From the forums, error 112 seems to be a problem in firmware 1.03. And probably ended any successful move to RAID1 without loosing data. At least I have a 2 GB volume on RAID1 now.
My Advice - never switch RAID configurations without a good backup first.