Done a little digging and browsing..
NEC says that the harddrives in the Versa 2655CDT models were either Toshiba or IBM drives, 2.5" 12.7mm IDE. That being the case, you could go on over to a place like
PiranhaTech and pick up a replacement 1.3 Gig drive for $23.00 (90 day warranty).
There are of course other places to on the Web, but as
gunrunnerjohn points out, you have to determine if the notebook is worth it; if it were my unit, I wouldn't invest much money in it, but if I were having this same problem, I'd spend the $23.00 and save myself some grief in trying to work around bad sectors.
Heck, you could probably turn around and put the old drive on eBay and make a few bucks back on it, even with the few bad spots.