When do you set up RAID

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RAID 0+1, as pointed out above, will somewhat give youfault tolerance and some speed.

Putting an OS on RAID 0 is an excellent idea. Since it will take two drives and turn them 1 making everything run better and easier. If the option to install an OS on RAID 0 is available, you should take it.
 
RAID 0 is an option for people who want to BUY (2) inexpensive disks and combined them so the OS thinks they have 1 large drive. For Example: A Seagate Barracuda 400GIG HDD with NCQ is $330.00. But, if you buy (2) 200GIG Seagate Barracuda with NCQ they are $125.00 that's $250 for 400GIG in RAID 0. You just saved $80.00.

And as far as performance goes, RAID 0 doesn't universally increase performance, i've read serveral articles and benchmarks that all showed that performance increase all depended on what chipset RAID 0 was run with.

RAID 0 is just a good option to buy (2) less expensive disks and combined them to have one large storage area.

Google : Performance increase in RAID 0
You'll find what i've stated here.
 
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