So I think we have found the issue. It looks like the problem was the block size, it was set for 256k and for some reason was not working. It would not work at 128 either, it was only at 64k where it worked. Now I am sure I am giving up performance which is an annoyance, but the system has past the first few hang-ups that had crippled it and tests out in the high 300MB/s read and write (5 drive array uninitialized yet for performance)
A couple of things from this experience.
1. Seagate customer service was alright, had a Level 2 on the phone in 5 minutes, we went through all the drive potential issues, and came up clean. Their official final perspective though was that these drives dont have the error correction in them to operate in a group larger than 2 or 3 and they recommended i move to enterprise drives. Though they washed their hands of it, it didnt seem to be their issues since the drives worked out.
2. Highpoint tech support SUCKS, really really sucks. The guy didnt know anything about the card nor the options in the management software, and all he could do was say he would talk to engineering and see if they knew anything. Now though I am just posting this here now, I submitted a ticket last week with them, and their follow-up was non-existent.
3. Other World Computing was AWESOME (thats where I purchased the card). Their tech actually knew the card quite well, and knew a lot about RAID architectures. We figured out that the issue didnt happen in RAID 0,1, nor 3, just 5. It was stepping through some items with him that got us to the block size, and have us up and running right now. They were also ready to ship another card out just in case as well.
So for those considering rolling your own, its probaly going to be fine, but if its not, be ready to be left in the cold to figure it out. Luckily i have fiber here and this was a non-mission critical attempt. But there is something for having one person to call who would take responsibility for issues like this.
For those considering the 3522, i am at this point a bit concerned about trusting it. I will post back once i have had a chance to put it through the paces. Highpoint did say that these drives were now certified to be compatible (7200.11 1TB), but I would probably go with the Samsungs to do it all over again. The case and cables are certified, so this should have worked.