Hi,
I've seen a number of posts that seem to get this error, but it always seems to be followed by not being able to restructure the RAID array and being told one of the HDD's is U/S.
This problem seems to be a bit different.
I've had the Buffalo LS-WTGL/R1-V3 F/W 3.09 for a few weeks and it's given me endless grief (I won't go into the continually vanishing USB drives and their folders). Mainly that I get the error:-
Error has occurred in RAID Array1.
It obviously has something to do with disk 1. Try pulling off the data and force updating the firmware with the option to "rebuild partition table" checked (this will delete everything on the unit). If you are still having the issues it is possible that there is a physical malfuntion with the HDD.