Strange behaviour of my sytem plz help

Hi everybody i am facing a very different problem and i can't find solution to it .

Probably 2 weeks back i turned on my system on regular basis,it booted up normally and im browsing the net suddenly the system got hanged and i restarted my system but it displayed black screen and got restated again .It got restarted for about 10 times and displayed a message "Disk Read Error Press Clt+Alt+Del to restart".I forcebly restarted my computer and booted in safe mode but in the safe mode also it got hanged and i restarted mys computer again them it booted up successfully.
The real problem starts here.Generally it takes for about 40 sec for mys computer to boot and display the desktop.But after this problem occurred it took for about 3 min to boot up and about 45 sec to display the welcome screen after the booting and it took more than 2 min to access my desktop.My system got very slow when i try to copy a file of 1gb from one drive to another it took for about 15 to 20 min,but previously it took only 1 min.before the problem occurred i installed games like batman arkham asylum it took 50 min to completely install,and it took 15 min for cod5 to insatal.But now it for about 4 hours to install batman aa and about 2 hours for cod5 to install.The extraction speed of the Winrar files also decreased it takes lot of time to extract small file.The system showed many errors while installing windows xp sp3 update on my system.
Plz frns try to help me to get out of this problem it is very irritating and i am out of my wits in solving this problem
My System specs :
Intel Core2Duo E7200 2.53GHz
250Gb Segate Harddisk.
2gb DDR2 Ram 667MHz,
Intel DG31PR Motherboard,
ATI Radeon HD 4670 1Gb DDR3.

Plz also tell me wether the problem is with the software or hardware
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More about strange behaviour sytem help
  1. Your hard drive is failing to perform. If you have another spare HDD I'd suggest reinstall windows on the new HDD after disconnecting this one . Install windows and then copy what ever data you need from the failing drive to the new one.
    Give the Failing HDD back for replacement to your Hardware chaps...... ASAP
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