Is my WD My Passport 0730 1TB mobile drive failing? Delayed Write failure & bad sectors

I bought a WD My Passport 0730 1TB mobile drive about 1 month ago.  I use it on a daily basis, but recently, I have been getting errors about the delayed write to MFT failing.  I ran the WD Diagnostics and the Quick test passed with no errors.  However, the extended test shows many sectors failing.

I have taken very good care of this drive, not banging it around, etc.

However, if it is failing after only 1 month, I am concerned about the quality of WD products.  I use this drive to store movies and backups on.  In addition, I am transferring files and data from an old laptop to a new laptop.

What am I doing wrong???  I am using Windows XP SP3, fully patched on a Lenovo T60 laptop.

Test Results:

Test Option: QUICK TEST
Model Number: WD My Passport 0730
Unit Serial Number: [Deleted]
Firmware Number: 1015
Capacity: 1000.17 GB
SMART Status: PASS
Test Result: PASS
Test Time: 18:58:45, June 08, 2011

Test Option: EXTENDED TEST
Model Number: WD My Passport 0730
Unit Serial Number: [Deleted]
Firmware Number: 1015
Capacity: 1000.17 GB
SMART Status: PASS
Test Result: FAIL
Test Error Code: 08-Too many bad sectors detected.
Test Time: 19:25:27, June 08, 2011

Hello,

Backup the unit and contact WD for replacement. You can do so either by phone or email.

To Contact WD for Technical Support
http://support.wdc.com/contact/index.asp?lang=en