Can a PERC H700 controller card recognize the full capacity of 4TB drives

You can use the Linux hdparm utility to set your provisioning parameters in this fashion:

root@ubuntu-10-10:~# hdparm -N /dev/sdb

/dev/sdb:
 max sectors   = 312581808/312581808, HPA is disabled

root@ubuntu-10-10:~# hdparm -Np281323627 /dev/sdb

/dev/sdb:
 setting max visible sectors to 281323627 (permanent)
Use of -Nnnnnn is VERY DANGEROUS.
You have requested reducing the apparent size of the drive.
This is a BAD idea, and can easily destroy all of the drive's contents.
Please supply the --yes-i-know-what-i-am-doing flag if you really want this.
Program aborted.

root@ubuntu-10-10:~# hdparm -Np281323627 --yes-i-know-what-i-am-doing /dev/sdb

/dev/sdb:
 setting max visible sectors to 281323627 (permanent)
 max sectors   = 281323627/312581808, HPA is enabled

root@ubuntu-10-10:~# 

To give credit where it's due, I've got this info from a German server builder's website wiki.

But according to the Intel docs, it would be enough simply to keep the sectors in a "clean" state (in which they would be after a secure erase) by never writing to them. If you define a container/volume which only ever uses 300 GB of each of your drives, this is exactly what you are doing for half of your drives' sectors.

RAID 1 is a mirror. The fact that when you drill down into the virtual disk, you only see Physical Disk 0:0 means that Disk 0:1 has failed and is showing as removed.

You could try removing the faulty disk (should be showing with an orange light) and re-inserting it - this sometimes kicks off a rebuild but even if that works you should probably consider replacing the drive to be on the safe side.

If the drive needs replacing, check if you have pro support on that server before you go buying anything - Dell will send you a new one for free if you have, but they'll probably ask you to do a DSET report first.

It's unusual for the Dell OMSA console to show a RAID virtual disk as degraded but the physical disks as not having any problems. Try refreshing the physical disk status to see if anything changes.

EDIT: From the hardware log you posted, it does look like disk 0:1 failed and then came back online. Normally, if OMSA thinks the hardware looks OK, this would let you initiate a rebuild of the array. You might want to try this but I would expect the disk to fail again before long.