Microsoft has published a Knowledge Base article (KB950193) for users running Power Pack 1 (PP1).
If you remove a hard drive incorrectly by NOT using the Remove a Hard Drive Wizard before physically removing a hard drive OR a hard drive experiences a physical failure THEN some files may be unrecoverable on Windows Home Server BUT only if the shared folders has Folder Duplication enabled.
This would show via a health notification in the console reporting that a hard drive is missing.
To avoid this issue make sure that you use the Remove a Hard Drive Wizard before physically removing any hard drives from your Home Server, which is available on the Server Storage tab within the Windows Home Server Console.
But, what about if a hard drive fails?
Well that is not going to be a problem either, as a small update has been made available on the Windows Update/Microsoft Update site which will resolve the problem. To receive it make sure that Windows Home Server is set to install updates automatically, which can be set from within the Console – Settings –General page, Windows Update section – On (recommended).
