So far none of the suggested solutions have worked and after a call to tech support I have concluded that the knowledge that Buffalo Tech support has is lacking in any depth to their own product.
I have taken another direction and researched other solutions on the internet that have given me positive results. I did not want to spend any addition money on getting my data off the failed buffalo RAID but that is better than losing the data all together. Here's the links to the solution I used.
TS Live Data Recovery
Since I only had a PC platform computer I had to use the method of recovering a RAID using "Data Recovery on x86 (Windows) using UFS Explorer".
UFS Explorer
I had to download and purchase the above software.
Here's a brief step by step of recovering my data.
I had Disk 1 of the TeraStation Live fail. After tech support supplied me with a new drive and no solution to getting the disk to be restructured I had use the following to recover my data.
Since one of the drives was "dead" I only needed three USB enclosures.
1. I had to purchase USB SATA drive enclosures for each of the drives that had data on them. $90 at mwave.com
2. I purchased the UFS Explorer software. There is a trial version to first see if it will see your drive config and data.
3. I removed the drives from the TS Live. Took them out of the trays and put them into the USB drive enclosures. I made sure I labeled them all appropriately.
4. Then I hooked them up to a PC that just happen to have enough available USB ports. If you don't have the ports available use a USB hub.
5. I turned on each of the drives in order. Drive 2 first, drive 3 second, drive 4 third. Keeping in mind Drive 1 is the failed drive and the replacement drive was not used in the recovery.
6. Opened UFS Explorer and all the drives are displayed. Based on how many disk you have already you may see that the USB drives you just added may start at a different number than what you had labeled them. But they will be displayed in order to how you turned them on.
7. Create a virtual raid and find each disk and Add it to the virtual RAID. Make sure they are in order.
8. Select Raid 5, Stripe Size 64K and Left-Symetric. After you select these items then you will be able to add a Place Holder Disk. Add one and move it to the position of the failed drive. In my case it was "drive 1"
9. Once the raid partition is created, right-click on the newly created partition and select "Fined File System".
You will now see all your data listed in the right hand panel and then right click on whatever folder you want recovered and select "Copy to..." option and copy it to a backup drive. This can be a local drive on the PC or another USB drive.
Total cost of this solution was about $160. Worth the cost but still burns my britches why I was not able to get access to the data through the TS Live even with one failed drive. I'm not a genius but I believe that is one of the purposes of RAID 5. A drive can fail but you should still have access to the data in READ ONLY and then you should be able to recover from one failed drive. In both of these cases the Buffalo TS Live FAILED.