I doubt your hard drive is damaged at all. This is a very common problem with large drives.
Refer back to my post:
It looks like your problem isn't Windows / drivers, it's your BIOS.
will tell you what you need to know.
Basically, you have three options:
1. Updating BIOS to support the larger drive
2. Purchase an ATA controller card
3. Use the MaxBlast software provided by Maxtor
If you BIOS doesn't read your hard drive's full capacity, your OS isn't going to read it either without some software or hardware help. (controller card or something like EZ-Bios or MaxBlast)
If your PC could originally see the 200GB, possibly you had the MaxBlast software on there before and it was erased in the format.