After further investigation, it appears as though this affects the Live
CD only. The alternate install works perfectly with RAID array creation
even when Ubuntu is installed.

It appears as though the Live CD does not officially support software
RAID array creation, see:
https://help.ubuntu.com/community/Installation/SoftwareRAID#Requirements

Though this is not made apparent to the user when creating the RAID
array (gnome-disk-utility is there and it allows you to get as far as
configuring the array).

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RAID creation fails due to absent package "mdadm"
https://bugs.launchpad.net/bugs/440831
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