Hi,
Not quite,you really need to read through the documentation, particularly the Drive Extender papers.
However, in essence, your drives are 'seen' as just one large drive with the first 20GB of the first disk being your system partition and the balance of the first disk being utilised as the landing space for any files you may transfer to the server.
WHS itself takes care of the file locations dependant on your choices. For example, you may not want your TV shows duplicated, but would certainly want your family photos to be duplicated while your backups won't be, as you already have the originals on your Clients.
As you can see, the space calculation isn't that straightforward!
Colin