I am new to RAID. When we say the HDD is mirrored under RAID1, will we have two instances of OS loaded? If I need to reboot, do I have to reboot both the HDDs or will the RAID controller manage it?
raid-1 means both disks can be read/write at the same time. Saying that, you have one OS, not 2. If one of the disks fails, the second disk is still working, and you just need to replace failed disk, rebuild raid.
One OS is loaded at one time or only one OS is installed in one of the disks? If the HDD that has the OS, fails, how does the OS stay up on event of failure?
only one OS is installed on disks. In the case of raid-1, 2 disks will be considered as 1. If one disk fails, the second is still working. You can read more about raid here http://en.wikipedia.org/wiki/RAID