I don't know whether to laugh or cry, the answer to my problem is so simple and stupid.
I'm going to leave the update here just in case anyone else has the same issue.
I was installing the Raid drivers from a separate CD, not from a USB drive. That required I remove the SBS 2011 install DVD from the reader and replace it with the driver CD. Until the install DVD is placed back into the reader, the partitions are not recognized and the error message gives no clue as to the real problem. By trial and error I finally removed the SASMF8i driver cd and put the SBS 2011 install DVD back into the drive, clicked refresh and everything was hunky-dory. If I had the drivers on a flash drive, I would never have removed the install DVD and I would not have had the problem, like everyone else is not having a problem.
Thanks for suggestions.