I was trying out "erase delays" in MHDD on a new WD2001FASS 2TB, but got this message after a while:

* * * CATASTROPHIC FAILURE * * *
Drive hangs on erase sectors.

Why did that happen? Does it mean the drive is bad? It was throwing several warnings (WW) during the diagnostic.

It means that your drive has serious problems beyond MHDD possibilities. Yes, according to this scenario it's bad. RMA if possible , get pro service for repair or get a new one.

In a couple of situations I have seen MHDD show "catastrophic failure" messages incorrectly.... though if you were getting other warnings then that may not be the case.

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You don't have to backup all of your files, just the ones you want to keep.

Arent these disks the ones with 4kb sectors? Maybe MHDD cant handle these

The new "advanced format" drives emulate 512-byte sectors to the interface, so I don't think that should make any difference.

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You don't have to backup all of your files, just the ones you want to keep.

Depends if MHDD is setup for correct 48bit LBA support I guess. Maybe ask the author?

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All went well until I plugged the drive in.