Bad Blocks + Bad System State on SBS 2008 Server

Good day everyone,

I have run in to a bit of an issue and I hoping someone here has an idea on where to go from here.

I have a new client who has a single 2008 Small Business Server which is, for lack of a better term, failing.
Currently they have a server with a RAID 1 configuration which recently had one drive fail. After receiving the new drive and having it installed it came up as failed as well, this was due to the drive-sync failing. It turns out the "good" drive has lots of bad blocks/drive corruption.
To make matters worse, the company has been backing up files but not system-state data and attempts to back up system-state data at this point have been met with failure.

My thought is to transfer their settings over to a new SBS 2008 server, however I do not know if that is feasible with system state not being available (hangs on Shadow Copy).

Before I do something irreversible, can this be transferred with System State possibly being damaged?

Thank you,
LVL 1
OpytkAsked:
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meko72Commented:
I would look into Jeff Middletons Swing It migration.

http://www.sbsmigration.com/
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GeodashCommented:
I would get a GOOD backup before trying anything. You can get a free 30 day trial of storage craft and offload an "imaged" backup fast to another server.

http://www.storagecraft.com/

This backup can be virtualized and stay intact and usable as a virtual machine while you are figuring out their array.

The reason I say this is I had a VERY similar situation and it worked flawless for me.
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meko72Commented:
Why dont you bring in the new server and join it to the domain and run DCPROMO
Setup the exchange and forklift the exchange dataase over. This away you can preserve the AD
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