Stands for "Redunadant Array of Inexpensive Disks"
http://www.acnc.com/04_01_00.html
RAID is just different methods for hooking up more than one hard drive to accomplish fault tolerance, for disaster recovery, backup purposes.
RAID 0 (which isnt really redundant after all) is when you have two or more drives and you "stripe" the data between the drives...in other words if you have 3 drives, instead of writing 1 meg to one drive, you write 333k to all 3 drives at once..hence it is faster. The catch is that if you lose ANY of the drives..youve lost all the data. It is generally for gaming systems, video editing and non critical data. Simple to implement.
RAID 1 is "mirroring"...when you have the same data written to two drives at once..so one works as a backup and you can lose one drive and still have the data. The speed is about the same as a regular one drive setup...of course if you have two 40g drives in RAID 1 setup, you still only have 40g of storage.
RAID 5 is popular for servers. It takes at least 3 drives to make a RAID 5 setup. What you have is an ECC error correction code produced and that code is spread out among the disks...so if you lose any one disk you can still recover although the performance will be a little slower in the meantime. Fast read time. Complex.
Those are the popular RAID types. Of course there are many other RAID types but some seem to be more or less only theoretical in nature because they just arent practical to use. RAID 3 used to be popular in servers but RAID 5 dominates now.
Usually a consumer type motherboard comes with RAID 0,1,and maybe 0+1 which is a combination of 0 and 1 and takes 4 drives to build.
JP