Giving these servers up is tuff, the design is awesome and really spoils ya with the ease of maintenance, the lights, the hotswap trays, quiet and easy to clean.
Had it not been for microsoft/HP giving up on a 64 bit version OS on these things, I believe they would still be selling like hotcakes.
I don't blame ya for wanting to keep it, one thing to note is you are at the entry level on these, the ex-490 and x510s were a stouter unit and might be something to look for an upgrade.
I started with the 470, upgraded the cpu and memory, then the power supply went and I decided to get one of the x510 and haven't looked back. Got 3 of them now, the main one synctoys to a second one and the third one is still in the box.
I sent the old 470 down to my brotherinlaws and they are liken it. I put a new power supply in it and bought a used one for spare parts. Told them to put it up in the garage, just in case.

I tried whs 2011 and it was ok I have tried W2012E and its ok, but those little 510's just set there and run, wake every morning, backup all the pc's in the house and then go to sleep at 11:00pm every evening without fail.
I have built a new rig for down the road, but as long as my data fits in the 510 and supports the pc's in the house, I'm going to run it till it drops

PS. You say you ran checkdisk on that drive and it checked ok, but when you put it back in the server, it shows up bad, I hope there isn't anything wrong with your backplane where the drive plugs into, maybe you should try putting that drive in a differant bay, the only drive that has to stay in a bay is the bottom one (the system drive) the others can move around and not hurt anything, just a thought.
Goodluck hope things get sorted out for ya.

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[X510 CPU/RAM/All 2 TB Red's] [X510 CPU/Sync'ed Backup/All 2 TB Hitachi's]
[X510 /2 in box]
[X710 LIAN LI DIY W2016E] Stablebit Drivepool [EX-503 LIAN LI 5-bay USB3 External]
Fear the Cloud

APC has their PowerChute Software which is listed for use with Windows Home Server v1 and 2011. CyberPower also has software which has been reported to run well with WHSv1 but uncertain about WHS2011.

Sometimes the software does not come on a disk with the UPS and needs to be downloaded from the manufacturer and there you can often chose the version by the OS your running.

As a rule of thumb you should not use more than 20% of the battery before the UPS instructs the server or computer its protecting to shut down. Last thing you will want to do is completely drain the battery. Batteries are typically good for 3-5 yrs after which they should be replaced. I use APC units which will test the battery and should the battery fail the test the unit will flag an alarm to inform you that you need to replace the battery. Also the software tracks when the battery was installed.

Typically you should fully charge a battery before putting the unit to use. Some are plug and play and do not make this recommendation but regardless you will want to start using the unit only when the battery has been fully charged which can take 4or more hours. Some have displays to indicated the battery level others do not.

The latest APC units I put into use I did have some difficulty getting the batteries to charge and so the cartridges really need to be firmly seated otherwise you will see then discharge even while plugged in which I found to be annoying but once I reseated the cartridges and did so firmly they will work perfectly..

For me when a UPS is several years old I will often replace the batteries and repurpose the UPS for other less serious applications like Low Power Consumption Lighting, TV's, Stereo System, Alarm Clocks, Cell Phone Charging you name it and I probably have an old ups on a device or series of device for added protection but when the power is out in my neighborhood I am basically the only one with lighting.

Point here is that the batteries do not last forever and you have to stay on top of them. If you get an inexpensive unit you will not be happy when it comes time to change the battery cartridge because of they cost more then a new UPS which makes then disposable but when disposing them you need to remove the battery and dispose of it separately because it could be a sealed lead acid battery.

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Exploring the possibilities!

Migrated from WHS2011 to WS2012E: HIGHLANDER

~ Norco 4220 Enclosure
~ Gigabyte GA-990FXA-UD5
~ AMD Phenom II X4 995 3.2 GHz
~ 8 GB Corsair Vengeance DDR3 1600 (PC3 12800)
~ 3 Supermicro AOC-SASLP-MV8

OK. The tip helped. I moved the "damaged" drive to another slot and it can back with the same issue. When I view Server Storage, that disc comes back as "not added". So it's off to the computer store for a fresh 2TB and start a new install.

Ok. I took out all the drives except the system drive, re-installed the system and seem to be back up and running. One (hopefully) last question, how do I format the remaining 2tb drive to put it back into the server?

Assuming you don't need the data on there, Put it in and the server will format it when you tell it to make it part of the pool. All data will be gone.
It's better to format them in a usb dock or usb to sata cable, but if you dont have that and can not open up a desktop to format it, not much choice.
Good luck

P.S. I would go out and get the FREE SMART addin so you will know next time a drive is acting up.
http://dojonorthsoftware.net/HomeServerSMARTClassic.html#all

_________________
[X510 CPU/RAM/All 2 TB Red's] [X510 CPU/Sync'ed Backup/All 2 TB Hitachi's]
[X510 /2 in box]
[X710 LIAN LI DIY W2016E] Stablebit Drivepool [EX-503 LIAN LI 5-bay USB3 External]
Fear the Cloud