Four types of RAID you'll come across (there's more, but you won't realistically encounter them):
RAID 0: stripes data across all of your drives. If you had three drives, instead of writing bit 1, then 2, then 3, each drive would get one bit and they'd be written at the same time. Theoretically, this multiplies your drive performance by the number of drives you have - subject to the throughput of your interface, controller/software overhead, and so forth. The downside is that if one drive in the array goes down, you have lost the data on EVERY drive as there's no redundancy.
RAID 1: Mirrors the data on one drive onto a second. This speeds up drive read but not write actions, but the main benefit is that if one drive fails, you haven't lost any data as it's all duplicated. However, if you have 2 120GB drives you're only going to get 120GB storage out of them which isn't the best MB per $.
RAID 0+1: basically, takes two drives (e.g.) to make a RAID 0 stripe set and then duplicates that onto two more drives in RAID 1 fashion. The downside is that, like RAID 1, you're doubling the disks, but in this you need at least 4 which can get expensive.
RAID 5: uses a stripe set as RAID 0 combined with parity bits to provide some redundancy. It's not quite as fast as RAID 0 and not quite as reliable as RAID 1, and the array needs to be controlled with hardware (dedicated RAID card) and can't be done in software through the OS, at this time. I don't know of any low-end cards that provide RAID5, so you'll need to get a mid-to-high-end SCSI RAID controller which, together with a few SCSI drives, will probably set you back well over a thousand dollars. You can easily build a complete, well-specced computer for less than that.
As to how RAID would benefit you, I'd say it wouldn't. As Steve and Mac said, streaming DVD video requires only the throughput of a 1x DVD-ROM, which is way below even that of a 10-year-old hard drive. RAID 1 will give you redundancy but unless that data is mission-critical and irreplaceable, you won't need that. You can expect around 1m hours MTBF on a modern drive which means, if you ran it 24/7, you could reasonably expect it to last over a century without a failure. I used to be a hardware technician and in two years in the field I probably saw 2 or 3 physical drive failures. You don't really need to take that into consideration unless your data is literally priceless.
Hope that helped!