My NAS will RAID quite happily but I've not gone with it, have taken the full capacity of 2 drives and will just upgrade the drives every couple of years instead.
It'll support RAID 0, RAID 1, JBOD or SPAN.
You can use FAT32/EXT2/EXT3 - i've gone with EXT3 as it doesn't really need to be defragged.
As Slackline says, the Transmisison BT client runs quite happily.