Well, it's starting to sound more like it does in fact have a hardware problem. There are a couple more things you could try before writing it off though. I would repartition the disk and/or do a low level format. Then high-level format and try to run scandisk or install your OS. In other words, I would completely rebuild the file structure. If you still have a lot of errors then it has some bad sectors at important locations or there is some other hardware failure. If it's not under warranty still then I would try these things as you have nothing to lose. If it is under warranty you should definitly talk to the manufacturer. You said that you have XP, which is fairly new, leading me to believe you should check your warranty info. If you need more info on how to do these things let me know.