All tests are fine including hardware. When it's in a failed state the only failure is the one I've described regarding the directory. What's strange is I did a backup on Dec 11 when I was using OS 10.3.6. I updated a couple of days later to 10.3.7. Everything ran ok for about a week before the first failure. I then restored it to the previous 10.3.6, it was fine for about 2 weeks and then it failed on Jan 2. I restored again to the 10.3.6 backup where I am now.
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