Sounds like you need to sys it, If you can get a 3.5 to 2.5 drive adapter and put it in a desktop PC (the adapter converts the 44 pin IDE to the desktop 40 pin), then boot from a bootable DOS or Win9x floppy; you may be able to run SYS and restore the boot secter.
Be sure to note the drive parameters in CMOS on the webplayer (heads,sectors, etc), they need to be the same in desktop PC. You can fdisk it and make it bootable on the desktop pc then reattach it to the webplayer. This is how most install Win9x on it by copying the files on another PC.
It would appear that drive is good, of course there may bad area on it which is power for the course on any older drive.