For how long has this SMART warning been appearing for...?
Quite simply your Hard Drive is kaputt
. Soz to break it to you (well actually it's your laptop that broke it to you first...).
SMART works on tolerant levels, so operating boundaries. A parameter is outside of the safe boundaries and so results in a SMART warning. If SMART detects a fault that can potentially lead to data loss, such as your Hard Drive catching fire or exploding, then it will give you a heads up before a catastrophe happens. Well it probably wouldn't catch fire or explode, but there's potential for it.
...you'll have to get a replacement I'm afraid