Alternating HD Icon / Prohibitory sign on boot

Hello All,
I'm hoping someone can help with a rather perplexing problem I'm having, this being the second time I'm seeing it on the same computer.
I'm working on a Macbook White 2.0GHz that alternates a HD Icon and Prohibitory sign on boot -- the two switch back and forth really fast. I tested all the HW with TechTool Deluxe and also ran Memtest and the HD manufacturer's diagnostic utility with no errors. The HD has a filesystem but all the data has disappeared -- there are a few folders, but it's mostly empty. I ran Verify Disk from the OSX CD and the filesystem checked out -- I could not repair permissions because the System folder is missing.
So I wiped the drive and did a fresh install of 10.5 and updates. All is seemingly well for a few weeks.
And now it's back. With the exact same problem and the exact same symptoms. All the HW tests OK, filesystem verifies OK, but there's nothing on the drive.
I'm officially stumped.
Any thoughts?
Thanks in advance!!

maho76 wrote:
The HDD seems to work normally via USB, though it's rather slow. I suppose that could just be a slow USB connection in my very cheap enclosure?
Exactly, the USB2 connection is the bottle neck.
I'll see if I can find a replacement SATA cable, I hope it's just that...
Though not the cheapest alternative, but the Apple store can do this and it should not break the bank.
Ciao.

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