R-linux help: on the right track?

The drive not expanding and sector errors scare me a bit as it may be indicative of failing hardware. Have you tried a direct SATA connection to see if it makes a difference? The first 4624MB or so are OS, SWAP, MBR/PT. I have a semi informative thread I can point you to (but you may have already read it)

http://community.wdc.com/t5/My-Book-Live/R-Linux-help/td-p/541235/highlight/true

Have you tried DiskInternals Linux Reader?