RAID is an acronym for Redundant Array of Independent (or Inexpensive) Disks. RAID 1 requires a minimum of two drives and RAID 5 takes three.
This Wikipedia article does a good job of explaining the RAID concepts and the various RAID "levels". You are going to wind up with an external inclosure with several disks preferably in "hot swappable" trays so if one fails you can simply swap out the failed drive without ever taking the array offline and the data on the new drive will be automatically rebuilt. The enclosure's interface to your G5 can be either Firewire 800/400 or even better eSATA.
Hardware RAID is preferable to Software RAID every time and the controller can either be a microprocessor in the enclosure itself or a PCI card in a slot in your G5. My personal preference in your situation would be having the intelligence in the enclosure with simple firewire 800/400 or eSATA interface to your G5.
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