Maxtor HD -SMART says there’s a problem

I have removed all my important files and used Maxtor software to check the disk. It passed all the tests. I also low level formated it after repartioning it. Smart still tells me there is something wrong. I used a smart software and it says the spinup retry count and the reallocated sector count is bad. It tells me that it has exceeded its threshhold count. My question: Is there any hope to fix this drive or to restore it. Or… should I just toss it out?

Thanks,
Michelle
duetco@attbi.com