I'm willing to bet you have a MiniScribe hard drive. These drives were prone to failure in the first place and seem to be failing at an alarmingly high rate as of late due to age (nearly all of them are 20+ years of age today). You're best off replacing it with a Quantum ProDrive LPS (easily pulled from an LC) and doubling your capacity to 40MB while doing so. (Of course, you can always take it higher than that).

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I agree. The Quantum ProDrive LPS series are a great hard drive.

They also made them in 80/120/160/230/250/300/500 MB variants. If you have serious trouble finding one of these, I can possibly sell a 160 MB Quantum ProDrive LPS w/system 6.0.8 installed for around $5 + S/H.

However, if you don't mind doing a little extra work regarding formatting, you can format a non-Apple ROMed SCSI hard drive (basically one that has no Apple sticker/no mention of Apple on the label) with third-party software like MicroNet Utility 7.2.7 (free utility). For example, I have a Seagate 80-pin SCA 700 MB hard drive (with a converter that changes the SCA plug to standard 50-pin SCSI) installed in one of my Macintosh LCs and another Seagate 9.1 GB 50-pin SCSI hard drive split into several partitions in my Macintosh LC 475; both drives were not designed to be used with Macs, but they work fine with the correct software.