Clone a windows server volume over a network — NOT make an image

Use Microsoft robocopy - it will do whatever you need.

First of all:

1. Creating a RAID 1 volume after the fact is not a useful way to deal with a disk error.

2. Because the creation of the RAID 1 mirror fails at the point where the bad block is reached, you can safely assume that you do not have a complete copy of the original disk with the bad block. There is no need to verify this assumption.

3. After you unmount Disk 1, running chkdsk /r on drives C: and G: should mark the bad sectors, move any readable data to other areas of the drive, and prevent future read errors pertaining to the same bad sectors. It will not prevent further deterioration of the (potentially failing) disk with bad sectors.

If chkdsk /r doesn't fix the problem, here's one method for moving all recoverable data to a new disk, avoiding a failure due to the bad blocks:

1. If you haven't already done so, make sure you have a current and full backup.
2. In Windows Disk Management, unmount and reformat Disk 1.
3. Shut down the computer properly.
4. Boot into Linux using a live CD or live USB stick, e.g. PartedMagic. Even an Ubuntu installation disc will work.
5. Mount both disks. Figure out which physical volume is the new disk and which one is the old disk. (Looking at the output of the mount command, run without any parameters, may help.)

6. Copy from the the old hard drive to the new hard drive using the dd command. Be sure to specify the noerror and sync options so that the bad blocks will be ignored. Their contents (which are already lost) will be replaced with zeroes on the new drive, so any files spanning the bad blocks will be corrupted. However, these files are already unreadable, so no additional harm will be done:

   dd if=/dev/<Disk0> of=/dev/<Disk1> bs=512 conv=noerror,sync

Substitute the actual device identifiers (e.g. sd0, sd1, etc.) in place of <Disk0> and <Disk1> above. Do not accidentally copy from the new disk to the old disk, as this would be catastrophic. Additionally, be forewarned that this operation will run slowly (i.e. much slower than the sequential read/write speeds of the disks) due to the small block size. However, I don't think it will work to use noerror and sync together (to ignore bad sectors and pad them out with zeroes on the new drive, without losing any recoverable data) unless dd has its block size set to the actual size of a disk sector.