Video Management File is Broken (by 2 users)

I've been having this happen over the past several months. When I poke the "yes" for recovery, the camera begins working again, but not without losing what i was recording. The last time it did it was when I was moving files over to the computer harddrive. I had about 5 or 6 more files to go and the Video Management File is Broken message came up. Did the recovery and the remaining files were gone off the camera and not transfered to the harddrive.
It seems to happen when it's been recording or removing files for any length of time. For example, my husband's in a band. When they play I record each song separately so I'll have a separate file. On one of the longer songs I got to the last approximately 30 seconds of the song and the Video Mgt. error came up, had to do the recovery and missed the end of the song.
I called technical support at JVC. The only thing they could tell me to do is exactly what is written in the book. He said it must be something with the harddrive and I needed to send it in to a repair place. Evaluation fee is $65. $15 of that goes toward return shipping and $50 goes to the cost of repair. I asked for an estimate of charges and he said his basic estimate for harddrive repairs is $350. I bought the camera in May of last year, so I'm obviously 2 months past the warranty. For that I could buy a new camera.
Can anyone tell me why the camera is doing this? I reformatted the harddrive following the instructions in the book. It's still happening.
Other than this issue, this has been a great little camera. I hate to give up on it.
Thanx for any help you can give me.