HP MSA60 complains that new drives are faulty

If this is the 21 disk RAID5 array you have, the issue is definitely a URE in the array preventing the rebuild from succeeding. In fact, that's probably what it is anyway, as a URE in a parity RAID array is much more likely than receiving 3 bad disks.

You can try upgrading the firmware, and HP support will generally suggest it, but it probably won't help. If you've got errors on your array, you're going to have to recreate it and restore the data to it. (Oh, but when you recreate it, do so in a sane fashion that doesn't involve a couple dozen disks or so in RAID5.)

If the lights are healthy on your disks and MSA array, you're may be okay. If relying solely on your Insight Manager, restart the agents on your Windows 2003 server. You can also just try a reboot.

You didn't explain what actions you took before this... You received replacement disks... But what were they replacing? Did you have a multiple disk failure? If on RAID 5, that's a bit of a problem.

Look for an error or status in the Array Configuration Utility that says "Waiting for Rebuild". If you see that, it's an indication that the Smart Array controller cannot rebuild the RAID 5 array due to a read error on one of the existing disks.