WD HDD: "Read Element Failure" causes other drive not to boot

On a WD 320GB SATA HDD, using the manufactures utility I received a "Read Element Failure" code 0007. I did a 'Full Media Scan' and it supposely fixed the problem.
I contacted WD and set up a RMA, but thier 'farmed out' support couldn't tell me what the error meant and there was nothing on their web site.

The orginal issue was, I have two bootable drives (the other is a Seagate), this problem kepted both drives from booting (not at the same time though). They would only boot up to the first Windows splash screen and stop. If I disconnected the WD drive the other drive would boot fine. The WD wouldn't boot either way, which I would understand.

Questions:
1. Does this "Read Element" mean the heads?
2. If so, how could software 'fix' a bad head, or could it be the controller?
3. How could this stop another drive from booting? Something corrupted between the two drives? (The drives will boot by separately with the other disconnected.)

0007 = Self Monitoring, Analysis, and Reporting Technology (SMART) Error returned during SMART Status/Self Test Command. The drive is defective.

http://support.wdc.com/techinfo/general/errorcodes.asp

Way down at the bottom of the page.

But it shows ok now.

And if smart is saying there is a error and time to replace your hdd, I suggest doing it as you can lose everything on that hdd when it quits!

Do you have that stuff backed UP?

The error was before the utility 'fixed' the problem. There is no error now, but I have a advance replacement ordered. I did ask about returning a drive that now shows no errors and they said there would be no problem. I had them confirm this.

This is my backup. My main drive has duplicate files and my other box has two drives with duplicate (but not updated) data.

The utility didn't fix the problem, its a physical problem, software cannot fix that, its just not sensing the error anymore, something must have made it temporarely refer back to a workable state during the test. The error will come back, and will probably cause even worse problems when it does, if not total drive failure.

New hdds are not that expensive.
http://www.newegg.com/Store/SubCateg...al-Hard-Drives