Posted 29 August 2008 - 06:36 AM
Hey there. In my experience, the "Error reading from source file or disk" issue during file deletion (and the shortcut counts as a file itself) tends to be due to file corruption. The NTFS attributes were somehow incorrectly written, whether it be because the machine was powered down during a write operation or the file was written to a bad sector on the drive in question. It happens to me when I pull a USB stick out before finishing a write operation.
That said, are we sure the hard drive is free of errors? If in reformatting you did a "quick" format, Windows just deletes the file table rather than fully format it, so a quick format will ignore hard drive errors. If you do the long format, it'll usually catch, adjust for, or stop due to bad sectors.
If the drive is fine, you might look into the IDE controllers. This is where I get fuzzy, but I'd guess that if the proper drivers are not in place, some motherboards may have difficulty communicating with the device.