Found out its a IBM Deskstar 60GXP 40GB drive.
Apparently there is a firmware update which I have now done.
Also on IBM's site there is a diagnostic programme called 'Drive Fitness Test' which analyses the hard drive.
I ran this programme and according to test results my hard drive is fine.
So that rules out hard drive and now thinking its maybe the IDE cable, PSU or IDE MB controller not functioning correctly.
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