There was an error while accessing this volume:
General Device Failure.
The disk is in an unreadable format.
errorcode = 20
io_Command = 49125
io_Offset = -1084792832
io_Length = 1024
io_Actual = 24
I took the brand new drive back to the store, they ran a diagnostic and said that there was nothing wrong with it. I eventually got it to work with about 95 % reliability by lower the UDMA.
Now I am trying to back up this same hard drive to an external USB drive. I can only copy a few gig at a time before I get the same error:

I plugged the USB drive into a Sam 460, and the same result: it would copy only so much and then throw up the same error. I have tried creating JXFS, SFS. SFS/02 and got a similar error or sometimes just a lock-up. The most I've got through is 11 GB, but sometimes I've had the error with as little as 800 MB.
I don't believe the USB drive is faulty as I have used it on an XP laptop with no problems.
The fact that two different Amigas are giving the same error really makes me wonder - is OS 4 incapable of copying large amounts of data?