My own personal preference would be to let the DNS-320L format a RAID-1 array from scratch and then migrate the data from a backup. Call me paranoid, but when it comes to data integrity, I never trust upgrade paths for storage (regardless of the device/brand or reliability of the upgrade). I'd rather be safe than sorry.
Again, this is a personal preference that in no way relates to the effectiveness or reliability of the storage configuration upgrade paths supported by the ShareCenter series.