Most likely the drive is toast. The S.M.A.R.T. system checks the drive for catastrophic failures at boot time (or symptoms that appear to make failure look imminent) and alert you. If you can get the drive to reformat, it would fix the MBR (Master Boot Record), but if there is some mechanical/electrical failure on the drive, it either won't work, or won't last long. While the controller is a remote possibility, it is most likely the drive itself.