Q: My SMART status says the disk is failing

Purchased and downloaded just fine also copied the app to a second volume.

When I attempt install I get:

This disk has S.M.A.R.T. errors. This disk has a hardware problem that can't br repaired. Back up as much of the data as possible and replace the disk.

I have run disk utilities and also repaired permsisions etc but for the hard drive I am notified S.M.A.R.T. status failing.

I have a full time machine backup, so I guess it's either reformat the primary of off to the repair centre?

Question is will a fresh build recognise the lion time machine content permitting me to restore or (more likely I guess) replace hard drive and restore to Lion and then upgrade.

If I can select from my existing (Lion) TM backup onto a clean install of Mountain Lion then that is my preference as prefer a 'clean' install anyway.

Suggestions/Comments on best route forward (machine MacBookPro) still under extended warranty,appreciated.

Name :           Macintosh HD

          Type :           Partition

          Disk Identifier :           disk0s2

          Mount Point :           /

          System Name :           Mac OS X

          System Version :           10.7.4

          System Build :           11E53

          System Copyright :           1983-2012 Apple Inc.

          File System :           Mac OS Extended (Journaled)

          Connection Bus :           SATA

          Device Tree :           IODeviceTree:/PCI0@0/SATA@B/PRT0@0/PMP@0

          Writable :           Yes

          Universal Unique Identifier :           66589AFF-0ED0-3521-96A3-17B83F0A8255

          Capacity :           499.25 GB (499,248,103,424 Bytes)

          Free Space :           46.7 GB (46,700,822,528 Bytes)

          Used :           452.55 GB (452,547,280,896 Bytes)

          Number of Files :           1,621,798

          Number of Folders :           367,683

          Owners Enabled :           Yes

          Can Turn Owners Off :           Yes

          Can Repair Permissions :           Yes

          Can Be Verified :           Yes

          Can Be Repaired :           Yes

          Can Be Formatted :           Yes

          Bootable :           Yes

          Supports Journaling :           Yes

          Journaled :           Yes

          Disk Number :           0

          Partition Number :           2

Message was edited by: G4CRU