ReadyNAS Data Recovery - VMware recovery tool

Finally got WMware Player 3.0.0 working on my PC, ran the image, accessed the disk and ran the terminal commands. Results:

vmw:/home/vmuser# modprobe fuse
vmw:/home/vmuser# vgscan
Reading all physical volumes. This may take a while...
/dev/sdb: read failed after 0 of 512 at 0: Input/output error
/dev/sdb: read failed after 0 of 512 at 2199023124480: Input/output error
/dev/sdb: read failed after 0 of 512 at 2199023243264: Input/output error
/dev/sdb: read failed after 0 of 512 at 0: Input/output error
/dev/sdb: read failed after 0 of 512 at 4096: Input/output error
/dev/sdb: read failed after 0 of 2048 at 0: Input/output error
Found volume group "vmw.debian5" using metadata type lvm2
vmw:/home/vmuser# vgchange -ay c
/dev/sdb: read failed after 0 of 2048 at 0: Input/output error
/dev/sdb: read failed after 0 of 512 at 0: Input/output error
/dev/sdb: read failed after 0 of 512 at 2199023124480: Input/output error
/dev/sdb: read failed after 0 of 512 at 2199023243264: Input/output error
/dev/sdb: read failed after 0 of 512 at 0: Input/output error
/dev/sdb: read failed after 0 of 512 at 4096: Input/output error
/dev/sdb: read failed after 0 of 2048 at 0: Input/output error
Volume group "c" not found
vmw:/home/vmuser# mkdir /mnt/lvm
mkdir: cannot create directory `/mnt/lvm': File exists
vmw:/home/vmuser# ext2fuse /dev/c/c /mnt/lvm
/dev/c/c is to be mounted at /mnt/lvm
fuse-ext2fs: No such file or directory while trying to open /dev/c/c

Can I now conclude my Seagate 1TB is in fact completely broken? Greatful for an answer to get a closure and throw this disk away. Only wish Netgear would start putting up other brands than Seagate on the HCL since this i my second dead Seagate. Really would like to buy e.g. larger Samsung disks that were on the HCL (especially now when I can't get rid of the ATA/LCC errors on my brand new 1.5TB WD15EARS........)
:(