Formatting will likely damage your disk in the sense that it will wear out faster. The reasons are obvious - anything that makes it thrash around will cause wearing... formatting, installing OS, programs, etc., etc.
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It doesn't matter how many times u format, generally PATA HDDS doesn't last long. 4yrs is very long in ur case.
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Why dont PATA discs last long?? Whats more you get 5 year warranty on HDDs now (at least on Seagate, dont know about others). They wont give such a long warranty unless they are confident about the life of their product!
An HDD should last much longer than 4 years... provided you use it "sensibly".