Just a quick update for anyone who is interested. I decided to take the plunge and buy two of these hard drives (they are on sale for $99 at Canada Computers until June 24th and couldn't pass it up). I have been successful in formatting the drives in RAID 1 without any problems. I have a rev B1 board and used both f/w 1.08 and 1.10 (aka 1.10b7) to format. I took the opportunity to do some testing and I will post my results in a separate post.
But I can confirm that this drive, the Seagate ST2000DM001 2TB 7200 RPM 64MB SATA 6.0Gb/s, worked for me without problems.