The W icon in the drive activity icon is not related to drive failure. It means 'waiting'.

If you skip a few tracks, then the player will keep the drive spun up for a while longer than usual just in case you decide to keep skipping more tracks. I don't think this is mntioned in the FAQ.

It is most likely that you just need to replace the drive cable. I will provide replacement drive cables (ie. post you a cable, not bring the player in) regardless or warranty status as I consider it a known fault. If that doesn't fix the problem, then I'll bring the player in.