RAID 5 likes the drives to be as similar as possible, you get the lowest common denominator of all of the drives in the array
(If one is an 80 and the rest are 120's, it seems like they all are 80's, etc..)
For RAID 5 the array uses one drive for parity, and the rest are a big "virtual" drive.
if you have 4 250's, then you will have a 750G array. More drives up to the limit of your controller is better. Note that any speed benefit is lost if you do not have a RAID conroller that does the math onboard. (True Hardware RAID)
The fun thing is that you really should get one extra drive to hang on to in the rare event that a drive fails, as you would not be able to use the system until to rebuild the array..