Hard disk problems

In my new ( 3 months ) Acer note book, I have this problem.

I have Windows 98, previously it was loaded with NT server 4.0

I am stuck in the middle, can not move the mouse pointer or work with the keyboard, getting the following messages.

Disk write error: unable to write to disk in drive C:, Data or Files may be lost

One of your hard disk has developed bad sectors

A fatal exception OE has occured at 0167:BFF9DFFF. Current application will be terminated.

I did my best, by running the ScanDisk, Memory check, Virus Check everything. The reuslt doesn’t show any abnormality.

Kindly suggest any thing I can do.

Thanks in advance.