I do not think that the hard disk is physically damaged, though. Take the warnings very serious - you may loose data. Your file system is damaged beyond what Apple themselves can fix.I have, however, had a Time Capsule for several years. I am unfamiliar with the two disk Mac Mini Server. If number 3, do I need to get a copy of OS X Snow Leopard Server server that I can boot from - or can I just use the Mountain Lion USB boot stick that I already have?
Replace the primary hard disk in the Mac Mini Server and then Boot up an OS X install via a USB Drive?.Connect the time machine volume and a new (blank) HDD drive to another mac and try and run Disk Utility / Time Machine?.Replace the primary hard disk and try to boot it?.I believe the operating system is OS X 10.6 Snow Leopard Server. It looks like the secondary drive (Time Machine backups) is fine. Back up as many of your files as possible, reformat the disk, and restore your backed-up files. Error: Disk Utility can’t repair this disk.Checking file systemVolume repair complete.Updating boot support partitions for the volume as required.Checking file systemError: This disk needs to be repaired.The primary drive is starting to go bad, I connected it via USB to another Mac and ran Disk Utility which tells me: The way I understand these things to be set up is that one drive is the primary drive and the second drive does time-machine backups. I got this second hand so I don't have anything other than the machine itself. It is the unibody model that has two hard drives and no optical drive.