Just an update here.

I let the format run its course overnight. It took more than 12
hours.

When it was finished, it formatted correctly, but found 132.5 MB of
bad sectors. The second partition is formatting now, just to see what
happens.

My question is this: Will it be okay to use the hard drive? I
understand that the machine will not write to the bad sectors, but
will the hard drive continue to go bad?

Thanks again for your help!

Dave