Restoring Data From a Drive With IO Errors

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http://www.linuxquestions.org – I have been looking everywhere and cant find exactly what I am looking for. Any links or help is much appreciated. I am constantly replacing server drives at work. Our terminals use Transcend 2gb Compact Flash Drives. Sometimes we run into drives that need to be replaced due to IO errors. Which brings me to my questions. I have heard that you cannot restore data from a drive that has IO errors. Is this true with Compact Flash Drives? It is to my understanding that IO errors are due to bad sectors on a harddrive and not the file it self. Is this true? Why can I not use the old drive to restor (HowTos)