RAID stands for Redundat Array of Inexpensive Disks. It's a way of keeping your data in tact if a hard drive fails. However, RAID IS NOT backup. Mechanical disks are in use, and mechanical devices do eventually break down.
The most common RAID levels are 0, 1, and 5. RAID 0 does not have the redundant part and is purely for speed. RAID 0 makes one big hard drive to the tune of (number of disks in array) x (size of smallest disk in the array). Do not use RAID 0 for valueable data. If one drive goes, you've just lost part of the bits of data for everything.
RAID 1: It writes data to both drives in the array. If one drive goes, you've got another hard drive right where you left off. The main issue is the lack of speed.
RAID 5: This requires at least 3 hard drives. Data is written across the 3 disks, sorta like RAID 0, but there is also a parity bit that's written across the disks as well. This requires a dedicated hardware function for best performance.
Most SATA controllers on motherboards use the CPU to do the RAID calculations. Cards from the likes of 3Ware and Mylex can have a dedicated processor and sometimes a slot for RAM to aid in buffering and are much faster. Of course, these are the $25 cards either. Realistically, you'd be looking at a $300-500 piece of hardware. From what I hear, 3Ware is about the best choice, although I would also see what Tekram has. Adaptec may be a 'standard', but they tend to cost more and aren't necessarily the best in performance.