S.M.A.R.T. Errors on OSX HD

While trying to update client MAC to OSX 10.9 [Mavericks], the computer reported S.M.A.R.T. errors with the message  ‘This disc has a hardware problem and can’t be repaired’.

I tried the Repair Disk utility, but to no avail. Mac is usable as is.

As this is a $1K MacMini, I need to cover all bases. Is there anything else I can do to determine if Mavericks upgrade can be done?
MARSPATHAsked:
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KimputerCommented:
Replace the hard disk. You're trying to install OSX on a disk that's about 99.99999999999% to fail on you. You're next post will be about missing important pictures, system freezing, and what not.
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David AtkinTechnical DirectorCommented:
I would agree with Kimputer.  backup your data ASAP.

I'd suggest imaging your disk, purchasing a new drive and then restoring the image.
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MARSPATHAuthor Commented:
As I expected, Thanks!
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