to be on safe side, go for two WD 640Gb HDDs as they will cost you 5.4k and a single 1Tb HDD costs you 4.5k. Better be safe than to be sorry.
You mean RAID 1 with the two? I already have a backup plan so, that won't be necessary. Also, 5 year warranty means that losing a HDD isn't going to happen, at least for some time.
But, if the 640GB hard drives are faster when compared to the 1TB one then this might be a good deal.
Also, about the WD Caviar series, which one should I go for Blue or Green? Black isn't an option I think.