I have similiar HDD, It has SMART BAD status, tons of realocated sectors and it used to crash when I was copying many small files (large files were fine). It was 2 years old (no warranty, I would definitely RMA it !), after cleaning PCB-HSA pads and changing SATA cable it crashes less and I use it to store large files like movies.
It is interesting that It worked fine until I connected new ST HDD into system, old disk immediately started crashing and reallocated sectors rised from around 20 to 4000.
If it freezes, I just disconnect power supply from it and connect it again, it spins up fine and continues working
Definitely, if you can, then RMA it. Unluckily, if you cant (no warranty ?!), before you throw it out of window you can try few experiments on it,

like baking it:
http://www.addictivetips.com/hardware/f ... g-in-oven/ Remove PCB from HDD and bake it like that guy baked his GPU. It can help in situations when PCB has invisible soldering problems like little cracks or "cold joints". Have fun
