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Is my hard drive going bad???

Ok been having some problems for a while now with os so decided to wipe out everything and start over.
now i reformated then the system went to reboot and then kept looping me back to the winxp cd to format again.

I then took out my hdd and inspected it and let it sit for a while, then put it back in and it booted up and started to install windows got so for through it and stopped responding. i rebooted but now hangs up at verifying dmi pool data.

has anyone ever heard of a hdd failing like this???
 
(UPDATE)

ok now i managed to get a fresh install of xp everythings going good then bang the pc shuts down and restarts and i get the message that a file in windows\system32\config\system was ether missing or corrupt.


this drive is driving me nuts, i have a wd 20gb that i put a fresh install on and it runs fine but i would like to have the space of the 40gb plus if it is bad its still under waranty and i will send it back.

any thoughts would be great.

thanks in advance
 
I've seen this before caused by bad sectors at the front of the drive.
When running windows and installing a program, it's usually smart enough not to write to bad sectors. When installing windows, it goes strait through, bad sectors or not. You could try a lowlevel format to see if you could fix or mark the bad sectors, if it still doesn't work, it's time for an RMA.
 
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