Hi Gary,
Your problem is one I have seen several times and the resolution is not easy.
You will have to forget most of what you know about RAID arrays on servers with dedicated raid hardware - nearly all small NAS boxes use a Software raid and as such can have serious problems if power is lost while the unit is running.
The fact that you have a faulty disk as well as a power failure has made recovery a lot harder. The simple recovery method is to replace the faulty disk, reformat the array and restore from your backup. Then make sure the NAS is on a UPS.
The fact you are asking here indicates, I may be wrong and if I am I apologise, that you don't have a backup. In that case you will need some recovery software, a lot of disk space to allow making a virtual raid array and have room for the data backup. You will also need some method of connecting the disks to the computer you are using in the recovery operation.
There is free raid recovery software available but I have never used it because it requires windows. I have used the commercial R-Studio Raid recovery software because it has a Linux version and we needed to do a recovery of a problem similar to yours (without the damaged disk) but that was quite some time ago and I don't have the software - my old company does. I will say that R-Tools Technology Inc do produce a quite detailed manual, presentations and online help to assist with raid array recovery.