"I assume I have messed up the raid."
That is correct :)
Assuming you don't want anything currently on the RAID 1, you can simply recreate it. In CTRL-R, highlight the controller, F2, and delete the existing virtual disk, then create a new one (be sure to check the Advanced and Initialize boxes).
"After I fix this do I start as I would with my client OS install... that is... will I do Fdisk and then Format using the boot CD?"
After RAID is configured, yes, continue with your install, either loading the driver at the F6 prompt or using an nlite-prepared installation CD. Fdisk is not necessary, but it won't hurt either.