Storage Spaces Can't Add Drive To Pool - Incorrect Function

When adding an initial drive to a storage pool I get the error "incorrect function"

System: Proliant ML110 G4, Windows 8 64-Bit, 4GB Ram

I have a 160GB drive installed on the motherboard's controller which hosts the OS. I've installed a single 2TB drive on a 2 Port PCI Express Internal SATA II Controller Card (JMB36x). As soon as I create a pool using the 2TB drive I get the error "Incorrect Function" and the drive becomes RAW.

The drive id's are unique. It's worth pointing out that the system without the new controller can only support 2TB max of SATA drives, but this is bypassed by the controller card I added?

Get-PhysicalDisk | format-list FriendlyName, UniqueId, ObjectId, BusType

FriendlyName : PhysicalDisk0
UniqueId : 2039374232333633
ObjectId : {af665d5a-f225-11e2-be77-806e6f6e6963}
BusType : RAID

FriendlyName : PhysicalDisk1
UniqueId : IDEDiskST3160812AS_______________________________3.AJL_5&3dc7918&0&0.0.0:risa
ObjectId : {af665d5b-f225-11e2-be77-806e6f6e6963}
BusType : ATA

I'm also worried that the 2TB drive is showing up as RAID not SATA on the controller.