The HDD Fails the SMART test so it is at the very least on its way out and should be replaced now before you lose any data.
The SMART test is there to warn you of any potential problems before they develop into serious problems and is doing its job. If you insist on using the drive until it dies you can go into the BIOS and turn off the SMART Warning/Testing but even if the drive failed to spin up at all it should still be reconsigned by the BIOS as the Circuit Board appears to be working properly and as long as that works BIOS will recognize the drive even though it may prove impossible to actually format the drive or do anything else with it.
So as a simple answer to your question replace the drive and everything should be OK again.
Incidentally things like this should be placed in the Question & Answer Section as you will get a faster response there as well as an auto generated e-mail whenever any one replies to your question. It generally works out faster for you as you tend to get people in your time zone answering your questions.
Col