Maxtor/Seagate is a good company. However, I do not own the hardware that you are asking about.
As for reinstalling an OS, it depends on your usage patterns and, really, how much time and setup it would take to get the system "back to where it is now" with application re-installation, etc.
In the Windows 95/98 days, I reinstalled a lot.
Not as much for XP (every service pack release or so) and even less so for Vista (a year or so).
The older I get and the more work I do on a system (and cannot afford any downtime), the less I wish to deal with re-installation issues.

With that said, I always recommend to install an OS "clean", meaning to backup all files and data you cannot do without on an external device (CD/DVD/HD) and format the OS drive.
I once had an email from a reader that stated they upgraded their installed OS from 95, to 98 to ME and then to XP Home and was having issues... That calls for a re-installation if I ever heard of one.
