Found a 300 GB Seagate IDE drive yesterday at a decent price at Circuity City. It will become my new USB backup drive, my current 200 GB USB backup drive will move into my RAID array (losing 80GB in the process), and the current 120 GB drive in the array is being trashed, since its 3 year warranty expired January 8th (21 days ago).
Everything in the raid recovery went well, I shutdown the system, swapped disks, and started back up. After several hours of rebuilding, the array is running again in normal mode and all data is still intact.