Question : Problem: Should I return a harddrive or do the trouble shooting?

I bought a 120gig seagate laptop drive in october. $85 bucks for a NBHD 120G|ST 5K 8M ATA6 ST9120822A

I put it in a usb external case and have used it 4 or 5 times to move big files around.

I put a 2gig file onto it, and could not restore restore it to another computer.  A chkdsk /r found errors on it.

I'm betting it is a bad drive, but clearly the source of the error might be the HDD, the USB case, or even a problem on the source computer.

Right now, I betting it is the hdd and I am leaning towards just pitching it, ($85 is not worth much of my time) Can anybody look at the chkdsk output and tell me if there are any "red flags" that can give me a little more direction.

C:\Documents and Settings\rberke>chkdsk d: /r
The type of the file system is NTFS.
Volume label is New Volume.

CHKDSK is verifying files (stage 1 of 5)...
File verification completed.
CHKDSK is verifying indexes (stage 2 of 5)...
Index verification completed.
CHKDSK is verifying security descriptors (stage 3 of 5)...
Security descriptor verification completed.
CHKDSK is verifying file data (stage 4 of 5)...
Windows replaced bad clusters in file 1861
of name \STEVES~1\Outlook.pst.
File data verification completed.
CHKDSK is verifying free space (stage 5 of 5)...
Free space verification is complete.
Adding 2 bad clusters to the Bad Clusters File.
Correcting errors in the Volume Bitmap.
Windows has made corrections to the file system.

 117218240 KB total disk space.
  16525080 KB in 1625 files.
       628 KB in 99 indexes.
         8 KB in bad sectors.
     71904 KB in use by the system.
     65536 KB occupied by the log file.
 100620620 KB available on disk.

      4096 bytes in each allocation unit.
  29304560 total allocation units on disk.
  25155155 allocation units available on disk.

Answer : Problem: Should I return a harddrive or do the trouble shooting?

I would just return it in exchange for a new one. Chances are it is a bad drive, but either way it is not worth the time to troubleshoot when you can just replace and save frusteration.