Likely the mass-storage controller driver is either not being loaded correctly, not available, or requires a firmware update of the RAID controller to see your RAID 1 array as one single volume to write out the recovery point image to. Ruling out possible firmware updates that may be needed for the recovery disk to use the drivers it already has, and that you have updated to the 6.54 build of the recovery disk, does using the F6 option when booting into the recovery environment - so to load a Windows 2003 driver for the controller – allow you to see the disks as one single volume?
With your current partition arrangement you will only be able to expand the last E partition into the unallocated space at the end of the drive; and that is if you expand it extended partition boundary first.
If you have a Backup Exec System Recovery (BESR) version 7.0x recovery CD, capable of restoring BESR 6.5x images, you may want to use its limited resizing capabilities when attempting to perform a restore of your recovery point images to a completely unallocated RAID 1 volume space.
Otherwise, use a Windows OS CD or other partitioning utilities to create, ‘Place holder partitions,’ on the RAID 1 volume prior to your next restore attempt. These place holding partitions are deleted, one at a time on each image restore attempt pass; at the point where you are asked within the restore wizard for an, ‘available destinations.’
Under the your restore options during your restore attempt include in your selection the, ‘Resize drive to fill unallocated space,’ to fill the selected recovery point image to the space once occupied by the place holding partition.
For a list of restore options and their use review Table 4-3 on page 81 of the 6.5 version of the Symantec Backup Exec™ System Recovery Implementation Guide.