What is better, hardware or software RAID? Good question.   
            
            It really depends on your means and expectations. Software 
RAID setups through an operating system are inherently lower in performance than hardware RAID controllers, 
due to the lack of dedicated hardware. They also are, in  the case 
of Windows XP Pro at least, much easier to set up and much 
more flexible in terms of disk use than a hardware based system.   
   A second factor to consider is    whether 
you want your operating system disk to be part of the RAID array you create? 
A major limitation of the WinXP RAID implementation is that the operating system must be 
installed before a RAID array can be created. This means that  if you 
would like to stripe your operating system disk for increased loading speed, you 
are out of luck unless you go with a hardware RAID controller.   
 So 
to cut it short, if you want the maximum benefit out of creating a striped 
drive, or need to create a RAID 1 mirror for backups, invest in a motherboard 
with an on board RAID controller or a PCI add-on controller card.  If you 
want to experiment with striped drives for speed, go with the software solution 
provided by Windows 2000 or XP as it is easier and cheaper.   
How to set up Software RAID in windows XP 
Professional         
Like most other hard drive and storage options, RAID is managed through Windows 
XP's disk management window, found by right clicking on 'my computer,' then 
selecting 'manage' followed by 'disk management.' Windows  XP Professional 
is only capable of creating RAID 0 striped arrays, while the various 
Windows Server operating systems can also create software RAID 1 mirror 
arrays.
Creating a striped RAID array in XP:       
For the purpose of this section of the guide we installed two blank 17GB hard drives on a 
test system.  To create a striped array you must first have at least two 
drives with a portion of 'unpartitioned space' free.  The largest stripe 
you can create will be twice the size of the smallest unused space on either of 
the disks.  If you have two disks, one with 4GB of unpartitioned space and 
one with 3GB, the largest striped array you could create would be 6GB, as the 
area of space used by the stripe on each disk must be the same.
              
        The first step is to convert 
both disks from basic to dynamic  disks within Windows. A dynamic disk is 
a disk that contains an additional database of other dynamic disks 
on the system. Dynamic disks can only be read by  Windows 2000, 
XP Professional and the various Windows Server operating systems, and are required to create 
software RAID arrays within Windows.
 For more detail on this subject, see 
PCstats' Guide to the little known features of Windows XP.
For more detail on this subject, see 
PCstats' Guide to the little known features of Windows XP.    
To convert the disks from basic to dynamic, right click the grey box on the 
left that contains the disk names (disk 1, disk 2, etc.) and select 'convert to 
dynamic diskā¦'
From the next Window you can check both blank drives and 
click 'ok' to convert them.

Once both disks are listed as dynamic, right click the 
'unpartitioned space' of either drive and select 'new volume.' On the next page we'll set these drives to be 
striped, and configure the software RAID options.