@Dawnsday: RAID stands for Redundant Array of Independent Disks. Basically, it's a setup used to increase redundancy by distributing data across multiple disks. RAID 0 is the only RAID setup that doesn't increase redundancy because, like iamsam says, the data is distributed across multiple disks in such a way that if even a single disk in the array is lost, the whole array ceases to function. There's a lot more technical stuff about it that I really can't explain in a short post, but there's an article on Wikipedia about RAID if you want to read up on it.
@Spooky: There will be some minimal downtime while the disk is replaced. If, however, you have a server that supports disk hot-swapping, then downtime will be further mitigated or eliminated entirely. For maximum possible uptime and redundancy, though, the best option would be to use RAID 10, which is like a combination of RAID 0 and 1 across a larger array.
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