I have a WD My Book Essential Edition 320GB external hdd that I use to back peronal files on my Windows XP Home Edition desktop PC. Speccy snapshot is at http://speccy.piriform.com/results/MjpXHJMYc1FSGzUk1M1oZu2
Although I purchased the WD external hdd in 2009, it has very little use as I only ever use it to backup the XP computer .
When I tried to perform a backup recently I received an error message "E:\ is not accessible. The file or directory is corrupted and unreadable". Copy attached.
The external hdd is shown correctly in Device Manager and in My Computer. However, when viewed in Disk Management the File System is now blank whereas it used to be NTFS.
I have connected the external hdd into a friends desk top PC with Windows Vista OS and it opened up perfectly showing all the backup files, photos etc. My assumption at that point was a problem existed with my XP Home Edition PC.
After I reconnected the external hdd back to my PC I ran the Chkdsk utility and 4 of the 5 stages completed OK. However, stage 5 reported there was insufficient disk space to fix all the  bad clusters. Copy of report attached.
What I would really appreciate is help determining:
is the problem with my XP Home Edition PC
or with the external HDD
or with both ??
Any thoughts / advice would be welcome.