Not the case that it is failing.
I have an HP Pavillion with two similar drives. I have had it for a few years now.
Almost immediately after I got it, this error started appearing. It is a glitch in the HP and there is a patch for it on Windows Vista. I just found out recently that this is a known problem with HP and it is not a problem with the disk.
I have been operating with this disk in that mode forever, with no loss at all.
Unfortunately, I have updated the operating system to windows 7 and the patch that HP has only works on Vista.
I would try what Seagate has.
Currently as we speak I am running Seagate's SeaTools for Windows to check the drive. I doubt I will find anything.