You need to erase and format the HDD to detect bad blocks. and Archive and Install defeats the purpose. Your HDD is either bad, or you've got bad sectors. My G3 imac started throwing the same problem a few months ago. Luckilly I only use it for music which is stored on an external drive, so a quick erasure, format, and re-install of the OS turned up an iMac that booted 45% faster, didn't make funny noises, and still runs great. Hope that helps.
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