SirDice, it's not me who have the money, i can do recommendation, but it's not my word that stands.
I already run it to these problems before, never had much trouble to fix it.
They know what they are paying for. The servers have been working flawless for 6 strait years. All the problems that showed up, i fixed them, didn't need for hp support.
So there is money saved here, and that is what the boss want, it is his call. I'm an employee, must do what he says.

gore, i live in a small island where i don't have no support on Servers, Networks, Datacenters, etc. I only have support on printers, laptop's, workstations.
If i want some other support, i must ask for a technician to come to the island, and i have to pay for everthing i said.

In this matter my experience says: I have a bad block on the drive, i SHOULD REPLACE IT. and take the "damaged" drive and perform a low level format and check again for bad blocks. But i would like to know if there is something that i can do, to make this drive to work fine again. Is those options valid? I'm just asking for opinions, trade some experiences, if you already done something like it, and what was the result.

I'm not asking, if my boss is right or wrong, or how are my skills. Don't take me wrong, but that is not what is the issue here, so i ask you please to be objective.

In here i have limited money resources, and there's a lot of thinks wrong, power source, servers room, environment temperature, etc. if i had resources i would do things different, but i can't

I also do support for another company, and installed a database server, a domain server, i had everything i asked for, and it's working fine for 10 years, it would be wonderful if everything was like that, but it's not.

Tell me your thoughts regarding the SMART error on the drive.
Thanks.