40 GB Seagate HDD you say? Is it a Barracuda 7200.7 or Barracuda ATA IV or V model by any chance? If yes, I wouldn't worry about those bad sectors at all.
I have numerous Seagate IDE HDDs from these old models, and a good few of them have at least one bad sector here and there. The worst one, a ST340016A (Barracuda ATA IV, if I'm not mistaken) has racked up ~38 bad sectors up to date. Started with 36 bad sectors when I got it 2nd hand back in 2010. I used it for a good few years and it never had any issues or slowdowns. Only after parking the system / PC it was in for 7 years and then pulling it out of storage did the bad sector count increase. No data loss as far as I can tell, though. Given the HDD is 14 years older now than when I got it and that it still works perfectly fine, I'd say that's still a very good track record, even with the few bad sectors.
When I worked in IT back around 2010-2012, I ran across a lot of 7200.7 models (both IDE and SATA). I can say that in at least 25% of these, I saw drives with bad sectors. But here's the kicker - all of these HDDs continued to work fine and eventually all of the PCs they were in were retired due to old age rather than failed drive. The other HDDs I frequently ran across were the WD800xx models (IDE and SATA again). In contrast, these rarely had bad sectors. And what's even worse, they regularly failed "out of the blue" with a click-of-death. So IME, they were worse overall than the equivalent Seagate HDDs of the era. At least the Seagate HDDs would start racking up a lot of bad sectors and get slow if they were to fail (did see a few fail, but much less often compared to the Western Digital's.)
Anyways, that's my experience with these older IDE/SATA HDDs.
Now, if this was one of the newer SATA Seagate HDDs from the 7200.10, 7200.11, 7200.12, or newer series, I'd keep an eye on those bad/slow sectors a lot more often. With these newer series, once a few appear, it's just a matter of time until more appear. Sometimes the reallocated / pending sector count will settle, and sometimes it work. With one 7200.12 drive I have, the bad sector count has settled (well, more or less) to around ~750 reallocated sectors and ~1300 pending. 😮: That drive also still works OK, but I sometimes get data corruption when I do large file compression on one of the 3 partitions. I imagine the magnetic medium on the actual disk where that partition is located is going / gone weak. Nothing I can do about it, though. I just use that HDD with a lot of caution and don't put anything important on it. Still has some functional life left, so why not. 😉
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So TL:DR: don't worry about the few slow/bad sectors on that old Seagate HDD. Just keep on using it and keep any eye on the SMART logs from time to time to see if the Reallocated Sector Count or Pending Sector Count starts increasing very quickly with use. If it doesn't, the HDD should be fine to use (even long term.)