Ok, folks! Major breakthrough. And major thanks for all who helped me out!!
I ended up re-installing freeNAS on a brand new USB drive. Low and behold, I was able to create a volume, and form there as they say it's history! I am not sure what caused the Volume Manager to be confused about creating a volume out of those drives.
More than likely that because it might have seen a volume there from that previous freeNAS 10 ALPHA installation. That's my suspicion.
So yes, I was able to create datasets, shares, seen by my Mac, all is well.
Now the hardest part probably is moving files from my Synology DS214+ to this spanking new NAS. It might take a while via the LAN.
Thanks again folks!!
A happy Gabi.