Bootup/Drive problems

Ok. Here's the problem. Every time I try to boot up my PC (Dell XPS
720 running XP) it always gets stuck in the "Windows XP" loading
screen. Initially when it starts up, it gives me the options to run
Normal mode, Last Known success mode, Safe mode with command prompt,
Safe Mode with networking, and just regular Safe mode. When I try to
open in either Normal or Last Known success mode, it gets locked up on
the "Windows XP" loading screen. When I try in any of the safe modes,
it gets locked up on running/loading the "mup.sys" driver. I've gone
into the Dell Diagnostics and did the memory test and the drive test
(basic test) and both passed. I then went into the structure/tree test
for the drive and found a couple errors so far (Verify Test error
code: 0F00:1A44 and Read Test error code: 0F00:0244 - uncorrectable
data error or media is write protected).

I've read some online forums and some people say my hard drive is
toast and others say it might not. I couldn't believe it would be
toast considering it's only about 13 months old, but then again things
can go screwy with Windows products. Please provide any incite on what
I should do next. Thanks in advance.