Hello,
The harddrive does need to be replaced as soon as possible. That error code is from the SMART self test. Those tests are very good indications of a failing harddrive. Basically it means that your harddrive is failing and some of your data is being corrupted. You should immediately backup anything you do not want to lose. If your computer or harddrive is still under warranty you should then contact the manufacturer and try to get a replacement. If it is not under warranty you can either buy and replace the drive yourself (you'll have to reinstall Windows, but it's not too difficult) or pay a tech in your area to do it. Most of the major PC stores, have a department that can help you with this.
