It's far too big for SCSI - that's the controller.
Smells like SATA, if a quick Google is to be believed.
A few manufacturers offer three-year warranties on drives after the calamitous one-year warranty phase some went through in 2002. I recommend you consult with the people who sold you the box, but I expect they'll want money, so you may wish to pull the drive yourself. The next step is to get an RMA if Maxtor will honour it (wipe anything you do not want seen first
).
Please bear in mind that you should either recover or rebuild XP, since your backup (if you are backing up the OS) will be with all the bad sector goodies as well. I recommend the latter, as it's good housekeeping (and discipline for keeping backups).
BOFH
Edited to say: Pprune Pop has wise words - keep your OS partition as tight as a goldfish's bum, so it's easy to mirror, either to another drive or DVD. Anything on a domestic drive must be considered volatile storage...