Amber light/disk failing

I'm getting a solid amber light (with message that the disk is failing) when using the 7.5.2 update. (1TB early TC). When operating with 7.4.2 there seems to be no problem. With the old firmware I accessed the backup sparsebundle on the TC and used disk utility to check and repair the disk. No problems were indicated. And the backups are going along fine. But when I update the firmware to 7.5.2 I get the message that the disk is failing (S.M.A.R.T.)
I have taken the disk back to faculty default status. And then after backing up one of the household computers again did a disk verify/repair with disk utility. Still get a failing disk message with 7.5.2. No problem with the old firmware.
I have a TC 2TB (new) and airport expresses all running on the new firmware. I suppose having the TC run on the old firmware right now doesn't matter since it works fine. But am curious about what the problem is....and also trying to think ahead to future upgrades.

Nope. It only gives me 7.5.2. I tried following the Apple advice (Libraries...etc), and it seem that the previous versions have been deleted (not by me, I hasten to add!). I did use the Time Machine to go back and look for it, but it's completely gone. . The Time Machine goes back to early Nov 2010, before I downloaded 7.5.2.
I went to an Apple Store today and asked. They said 7.5.2 is better at diagnosing probs than 7.4.2 was, so I should see a Genius asap. My TC is from the dreaded 2008 year...and is just outside the serial nos. recalled by Apple, so I'm worried they won't help. Which means arguing the Sale of Goods Act (our UK legislation which I won't bore everyone with here!). Hoping for good customer service instead though!
Alterbatively, if you have any better ideas, or know of a solution, please shout!

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