Installing two hard drives as seperate volumes

Gouge wrote:
If I do this (ie. individual Raid 0) and one drive fails will the NAS operate still with the remaining drive ie. is the OS installed on each drive or is it held on the Readynas itself?

The OS is installed on the disks. A single disk failure of volume C would result in a non-bootable system.

Gouge wrote:
Also as the format is EXT3 is it possible to connect a raid 0 drive as discussed, up to a Linux system and transfer data between it and other drives. The reason I ask is for initial transfer of data to the NAS drive it would be easier and faster to connect it into a normal linux system to move the data to the NAS drive on a SATA 2 interface.

Nope. You need to transfer the data across the network. If you tried the above method, when you installed the disk from the linux system into the NAS, it would be initialized for use with the ReadyNAS (wiping your data).