New WD20EARX with a strange problem

Just built a new pc, Asus P8Z68V/Gen3 motherboard, i7 2600K, 120gb Mushkin SSD SATA III as C: and  a 2tb WD20EARX as D:, Pioneer BDR Sata II Z:.

I can copy files to the drive no problem and browse the folders and see them fine. But it won’t read them back. It timed out loading a 309kb file.

I ran the Data Lifeguard Utility and it hung for ages before failing on both quick and extended  tests, but no error code.

I switched it from a SATA III port to a SATA II port and reran the tests. This time I get the error “Status code = 07 (Failed read test element), Failure Checkpoint = 97 (Unknown Test)” on quick test, the extended test says 49hours left to run.

There is no newer bios for the motherboard to try, does this sound like a broken unit I should get returned or is there something with sata III i dont get?

Contact WD and replace it.