Can my hard drive be the culprate?

Okay, ive upgraded my computer over time, currently had I5 2400, 4gigs of ram(Yes I know I need more :P), Antec 650w PSU, and HD 5770. I know some still need upgrade, like ram. Gfx card is doing me well for now.. but one thing I havent upgraded is my hard drive, and ive noticed my hard drive seems like its constantly loading even if im not doing anything, or things take A LONG time to load, and I would think with having my i5, thing should be a lot faster then they are. Is it possible my hard drive is slowing me down since its pretty old? I mean, I bought the hard drive a while back, but realized I didnt have SATA hook ups, so it sat for a couple years, then I just started using it like 3-4 years ago, so technically its only been used for 3-4 years.. but the hard drive I have is ...

Maxtor DiamondMax 10 6L160M0 160GB 7200 RPM 8MB Cache SATA 1.5Gb/s 3.5" Hard Drive -Bare Drive

Could this be slowing me down?
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More about hard drive culprate
  1. Okay, so I used Seagate tools to test the drive, and it failed the Windows test, and the FAST dos test. It recommended doing the Long Test, but dont have time to do it really right now, can take 2-3 hours.. but if this is telling me it failed, and has bad sectors, how much can that affect the loading times, and speed of my computer?
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