Scan disk will not attempt to repair an error in the FAT.  A low-level disk
utility such as Spinrite might be able to repair it, but with the current
price of disks you could consider retiring this one and buying a new one.
Because the FAT is at the start of the disk, an uncorrectable error in the
FAT can be worked around by creating a small non-DOS partition at the start
of the disk.  This pushes the first DOS partition past the faulty part.
--
Jeff Richards
MS MVP W95/W98