Not sure how to answer, but you could read this article about bad blocks on new drives. And there was a recent discussion, with no agreement, on zeroing new drives to eliminate bad blocks. Can't locate it right now but this is where it was.
https://discussions.apple.com/community/mac_os/mac_os_x_v10.6_snow_leopard?view= discussions#/?per_page=50
Warning: Bad sectors on a modern hard disk are almost always an indication of a greater problem with the disk. A new hard disk should never have bad sectors on it; if you buy one that does have bad sectors, immediately return it to the vendor for exchange (and don't let them tell you "it's normal", because it isn't). For existing hard disks, the vast majority of time, a single bad sector that appears will soon be accompanied by friends. You should make sure to contact the vendor if you see bad sectors appearing during scans and make sure the data is backed up as well. Personally, I will not use any hard disk that is developing bad sectors. The risk of data loss is too high, and hard drives today are inexpensive compared to the cost of even an hour or two of recovering lost data (which takes a lot more than an hour or two!).
http://www.storagereview.com/guide/formatDefect.html
To put what Smart Utility says in perspective. I ran it on my then new 21.5 and it produced a lot of gibberish. I'm not sure what to make of the report you got.
Message was edited by: WZZZ