Imminent disk failure?

I recently finished building a low budget gaming rig, after installing windows 7, the drivers for my hardware, doing updates...etc, my bios warned me that my hard drive's status is "BAD", I skipped this warning and booted into windows where I was informed that my hard drive could fail soon and I should back up. I should mention that I formerly used this drive in an external enclosure for almost two years before using it in my rig.

I backed up and ran crystal clear disk info (see results attached). What should my next course of action be? Could I have done something wrong in the building process to cause this?
 

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The disk is going bad, to put it in simple terms.

It could continue for a while longer, but I would consider replacing it.

There might be an option that could repair the damage (I think), but I'm sure someone else will say if there is.
 
Reallocated sectors.. seems like just bad sectors then. Not that thats real great, but in the realm of failing drives, it could be a lot worse.

What I'd suggest is check the warranty on the drive, you may get lucky and have it still covered (several manufacturers offered 3 and 5 year warranties not too long ago). If it is under warranty, pay the bit or whatever it takes to get them to send you a new drive and you send the old one back after they ship the new one to you. That way you could clone the drive with something like Easeus Disk Copy.

If its not under warranty, I'd still buy a new drive ASAP and clone. Then, you could use the dying drive as a secondary drive for scratch files for a pagefile and then misc crap that wouldn't be terribly missed if they went away some day.

To what Leeky said at the end: If you can't get a new drive, there is a program called HDDRegen(erator?) that actually can fix bad sectors a lot of the time (fix, as opposed to just marking them bad).
 
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