You should try to avoid running Exchange on a domain controller. See: http://articles.techrepublic.com.com/5100-10878_11-6070680.html
http://www.petri.co.il/problems_with_exchange_2003_installed_on_domain_controllers.htm
And Microsoft says: After you install Exchange Server 2003 on a server, do not change the role of the server. For example, if you install Exchange Server 2003 on a member server, do not use the Dcpromo tool to promote the server to a domain controller.
http://support.microsoft.com/default.aspx/kb/822179
So I would not take that step. It seems like it would be more adviseable to replace the bad hard drive. Next time (especially at a co-lo) you should setup your RAID array to include a hot-spare.
Good luck,
Tom
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