Hardware RAID is definitely superior. For one, you can add drives on the fly and expand the drive array without taking the server down. Software RAID uses CPU time, while Hardware RAID doesn't. Take it like the difference between running your hard drive in PIO mode and in DMA/UDMA mode...trust me, there's a difference. Software RAID is good, because it's "free", that is it comes with WinNT/Win2K, but it's never superior to Hardware RAID, especially the flexibility and reliability that hardware RAID gives in comparison. I can't be certain about Win2K, but in WinNT, if you lost your OS, whatever you had in your Software RAID was lost, unless of course you made a drive configuration disk under Disk Manager. With hardware RAID, you don't have this problem.