you need to have at least one hot spare for 1TB drives. When drive fails Clariion will chose FC hot spares first, if all those are not available only then it will select SATA.
  Can anyone help me with this?  We just put a new DAE in and I'm thinking thats the one I need to setup the hot spare?  Now that I think of it, the new DAE are SATA drives unlike the rest which are FC drives.  If the new DAE of SATA drives are larger than all the rest of my Fiber drives, (and they are, the SATA drives are 1TB each) do I really want to make a SATA drive a hot spare for FC drives?
The storage system has no hot spares that are as large as its largest disk.