I'm yet to try it but i was thinking: might it help to boot from a 98 startup disk, run fdisk, delete the partition, and create a new one. Could that remove any faults on the C: partition, or do you think it's a physical hard disk problem.
Nothing has happened to the PC out of the ordinary, therefore I don't see how physical damage could have occured.
All the IDE's are in place and properly attached. It's a Rock Xtreme 9700.
Rock Xtreme 9700