Deleting your array will lose all data. You will basically be starting over. You delete/change the array in the array utility you used to set up the array in the first place.
RAID 1 is useful if you want to have a backup of data. It has a couple drawbacks. Firstly, it is slow cause you do everything twice when you use your hard drives. Also, you will cut your storage size in half. And in your case, you cut your size in half, and lose 200 gigs. You would only have 300 gigs available. But you'd have two identical copies of all your data.
People use RAID 1 if they are incredibly fearful of losing important data. If you put 2 - 500 gig hard drives together, you only have 500 gigs of storage available, but you have an identical copy of all your data in case one of the drives fail.
In your case, either leave your current setup as is and use RAID 0 to have 600 gigs and faster performance. Or get all your space back and have slightly lower performance by deleting the array, format both drives, and keep them separate. Install your OS and programs on your 300 gig drive, then use your 500 gig drive to store music/movies/docs/etc.
If you want option 2, first delete the array. Then turn your computer off and unplug your 500 gig hard drive. Then put your XP disk in and go to set up XP. When it asks where you want to install, just delete all the partitions till it says unpartitioned space (if it doesn't say that already). Then select the unpartitioned space and do a quick NTFS format and then finish the XP install. When it's all done, turn off your computer, plug your 500 gig hard drive back in.
When you get into Windows, right click on My Computer, Manage, Disk Management, right click on the 500 gig drive, click format, then do a quick NTFS format.
After that, you're set to go
