ReadyNAS 2100 failure, No volume with replacement chassis

Background:

The 2100 is using 1.5 Seagate drives set up in a RAID 5. Had 2 ISCSI volumes serving a VMware Sphere environment. The 2100 has been running for the last year, and occasionally locks up requiring a hard reboot. Last week I did a Hard reboot and when the NAS came back online it had no volume. It would lock up after a few minutes and required a hard reset. I contacted Netgear support through a ticket and They determined that the chassis needed to be replaced. I recieved the new chassis and swapped the 4 drives. The system came up with SMART errors on drive 3, but all drives reported a status of "ok" I swapped out drive 3 with a known good drive and it reported that the new drive 3 was dead. I put the old drive 3 back and it is also now reporting dead. I took the new drive and formatted it on my Mac and it works fine. I am also getting smart errors on disc 2, Count increased to 81, from 71. I have updated the ticket twice and have had no response from Netgear support since the 22nd. The case is still open.

Questions:

Will a Mac formatted drive work in the 2100?

If I have to create a new volume (total data loss) how would I do it? It reports no volume, and I don't see a way to create a volume.

Any other advice to get it working again?