It's possible. It might be a transient, if common, error, or it might be that the drive finally gives up and the application ignores it or gets bad data that you don't notice, or it might be only a particualr section of the drive that's bad that isn't really noticeable while playing the music.

Regardless, there's not much point in arguing about it. The errors that you listed expressly indicate a hardware error. It's now a task of finding out what hardware is causing the problem. The three non-fatal suspects are the drive, the cable, and the header. I'd check those first. It's possible that the IDE controller is going bad, or that some traces have gone bad, or some other basically irreparable problem, but I'd say that those possibilities are quite unlikely.