in adition to rustys suggestion, making a complete check of the filesystem might be a good idea, those bad blocks... that does not sound good to me.
If it was me I would make the filesystem (I will use EXT3 but...) and scan it thuroughly for bad blocks.
Code:
mkfs.ext2 -b 4096 -c -j m 1 /dev/hda1&&e2fsck -cfkpv /dev/hda1
this will take a l o o o o n n n g time, but it will scan for bad blocks and mark any found as bad...
you might ave to make a "checked" swapspace aswell.
Code:
mkswap -c /dev/hda2
will scan for bad blocks and make a swap partition on hda2.

ah, just a sidenote, I would make two regular linux partitions one / other /home. then I can wipe / and still have my own files in /home intact.