Is my Duo v1 dead?

Ok, so I've done a bit more digging. I can present disk 2 to my Linux box, partition the drive, create a filesystem across the whole device and then copy all of my files to it without error. I'm taking this as a perfectly working drive - unless someone can explain otherwise :)

I've re-run some of mdgm's suggestions with disk 2 still removed from the Duo. The enclosure.log has been updated as the fan spin rate has changed again (by 300 RPM due to only 1 drive?), but this log is still claiming that I have no disks:

# cat enclosure.log
model!!0!!mode=home::descr=ReadyNAS Duo::arch=nsp
fan!!0!!status=ok::descr=3614RPM
disk!!1!!status=not_present
disk!!2!!status=not_present
#

The xraid config file now has it that drive 2 is "faulty", but present :? and drive 1 is good:

# cat /proc/xraid/configuration
VERSION/ID::superblock=(0.1.0),ID=0e2087bf.00000000.00000000.00000000,create_time=516c5f19
RAID_INFO::disks_total=2,raid_disks=2,parity_disk=1,disks_online=1,disks_working=1,disks_failed=1,spare_disk=0,base_disk=0,size=1953108616,update_time=00000000,state=0,luns=2,extcmd=1,expandable_bitmap=0x0,lsize=1953108614,drive_present=0x1
LOGICAL_DRIVE:0:begin_sector=2,sectors=4096000,raid_level=1,status=not_redundant,initialized=0,dmap=1
LOGICAL_DRIVE:1:begin_sector=4096002,sectors=1949012614,raid_level=1,status=not_redundant,initialized=0,dmap=1
PHYSICAL_DRIVE:0:number=0,device=hdc,major=22,minor=0,raid_id=0,state=online,present=1,size=1953108616,r_model=ST31000528AS,r_size=1953108616,r_fw=CC38
PHYSICAL_DRIVE:1:number=1,device=hde,major=33,minor=0,raid_id=1,state=faulty,present=1,size=1953108616,r_model=UNKNOWN,r_size=1953108616,r_fw=
RUN_PARAMETERS::raid_running=1,last_word=ok,interface_start_at=1,fake=0
RAID_REBUILD::sync=0,logical=0,parity=0,sectors=0,total=4294967295,source=1,total_drives=1,auto_sync=1
RAID_P_CHECK::chck=0,current_lun=0,total_luns=2,raid_level=0,err=0,current_sector=0,total_sectors=0,report_err=1
RAID_P_INIT::initialized_bitmap=0x1,initialize_error_bitmap=0x0,initializing_bitmap=0x0,current_sector=0,total_sector=0
#

I'd really appreciate any comments on this. I feel that I need to either fix this or replace the unit - afterall, I don't have to repalce the disks!!