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You should be able to replace the hard drive, but I personally will wait. The Intel(R) Matrix Storage Manager 8.9 had some issue with failing good hard drives. Try installing the 8.8 or the Intel® Rapid Storage Technology 9.5.
I installed Intel® Rapid Storage Technology 9.5 (is this is latest version of the intel RAID management software? It is hard to tell from the Intel site.) and it says the drive is failed as well. I also cannot get to any of the data on the whole array. So it sounds like the drive really is failed and it needs to be replaced. I guess I will wait till after the current migration is done. Is there anyway to make it migrate faster? It has been almost 2 weeks now!
I ended up just formatting my drives and starting over