RAID 5, explained

RAID 5 (block-level striping with distributed parity) distributes parity along with the data and requires all drives but one to be present to operate; drive failure requires replacement, but the array is not destroyed by a single drive failure. Upon drive failure, any subsequent reads can be calculated from the distributed parity such that the drive failure is masked from the end user. The array will have data loss in the event of a second drive failure and is vulnerable until the data that was on the failed drive is rebuilt onto a replacement drive. A single drive failure in the set will result in reduced performance of the entire set until the failed drive has been replaced and rebuilt.
httpv://www.youtube.com/watch?v=LTq4pGZtzho

http://en.wikipedia.org/wiki/RAID_5#RAID_5