Fixing bad sectors

If it is formatted as NTFS you can try using chkdsk /r to repair the drive, but I'm not sure how much that will help you in the long run. If the drive is failing, this could be an early warning sign. Backup everything you want. I suggest using dd to avoid having to manually copy everything over.

Presuming you haven't yet lost any data, buy the new disk and clone across to it. Then you don't have to deal with setup again. You can connect the new disk and use dd from Ubuntu to clone it. There are multiple sites covering the process. As for recovering the sector, there are programs that claim they can, and some people claim to have good luck with them, I personally did not.