| posts: 7,096 | Location: Toledo, Ohio
The program is telling you it found a bad sector, which doesn't always mean that the drive is toast, but it's usually a strong indicator of mechanical or magnetic problems that could and usually do lead to complete failure.
As for the backup message, it's probably Seagate just covering their bums so that if the drive happens to fail when you're using this software they can't be held responsible for it. It's kind of a silly loophole, really. Although if it does fail during the repair attempt, it's not like there's any way Seagate will know unless you tell them. So just don't say a word about it if it does fail.
Regardless, back up your most important items.