I had one of these go south on me with the same error. I was able to recover it using a disk called Hiren's Bootcd. There was a program on there that was actually able to read the corrupted file allocation table and at least recover the data to another drive, but the drive was toast from that point. I honestly can't remember the name of the app right now.
It would spin up and format, but it wasn't able to write data out to the drive for more than a few minutes without failing and causing the disk to disappear from my computer and have to be power reset to even show up again. I ended up tossing the drive as it was out of warranty (got the drive from a friend for some computer/web work I did for him) and didn't have the receipt. Luckily I only lost a small amount of data (various music files and clip art files that I had downloaded and a few pictures that I had backed up elsewhere). If you still have the receipt for the drive, you might want to see if it's within the warranty and get it replaced.
I've had good luck with WD My Books. I've got a 250 and a 500 that are going strong. As with any backup solution, it's only as good as the drive it's on. My photos are backed up onto 3 different drives on a weekly basis so at most I'll only lose what I should still have on my memory card for the camera.