I recently was working on a faulty Dell Vostro - 6 months old and still in warranty. The user encountered a BSOD and Windows wouldn't start, even in Safe Mode. The machine would post and start to boot and then I could hear the hard drive making an unusual noise before the BSOD. It was a Samsung 320Gb and I immediately did a test using Samsung's HUTIL utility. It reported an error - a bad block on the drive. So I phoned Dell Support to get the drive swapped out. A very nice Indian gentleman told me that a hard drive with one or two bad blocks was just fine and nothing to worry about. If the drive had more than 10 bad blocks he would be ever so happy to replace the drive for me.
10 bad blocks!!
Maybe I am being unreasonable but if the drive has one bad block then the hardware has developed a hardware fault and should be replaced. I'll admit that one bad block out of 676,000 is not many but surely there's a greater chance of data failure if more bad blocks fail. The HDD was only 6 months old and I would be concerned about using it with even 1 bad block. Or am I being unreasonable.
As it happened Dell talked me through running their own diagnostic software and in addition to the bad block it failed a SMART self short test. Only then were they happy to replace the drive.