Al, my apologies for my vague question :P. I would like to know if a Raid configuration is a good choice for me since one of my hard drives is only 80GB. I tried a raid configuration but when I mapped the drive on windows7 the Raid capacity was showing only about 70GB . Right now I decided to run FreeNas7 and have mounted the two drives as separate shares. With this configuration I will have to back up my files to an off site backup service, which I should be doing anyway. Thanks for taking the time to read my post.
Take some time and learn about the various RAID levels. You tried RAID1 and found the resulting array is only as large as the smallest drive. This is not necessarily true for all RAID levels and there are different ways to use different size drives. The best methods keep it simple. Stay away from RAID0 and JBOD.