"Running Norton Disk Doctor, Norton Speed Disk, and M'soft Defrag all show bad blocks/damaged areas when viewing the disk map in those utilities"
They show the bad blocks because they are marked on the disk as bad blocks - Scandisk marked them so.
As for the Maxtor diagnostic, I can't tell what it would indicate in the circumstances - I suggest you ask them directly on this one. It may be that there was a transient problem which a reformat and/or zero-fill would cure - it may be a real problem.
If you disk has developed a real problem, then I think you have a case for a warranty replacement, as it's ver unusual for hard drives to do so, and is a pointer to maybe worse problems.
One thing you could try, is to enable SMART in the BIOS and download the trial of ActiveSmart. This will tell you if your drive has ceratin types of problems - including excessive read errors - which will be accepted by the manufacturers as a valid warranty claim.