|You not being able to format the card has nothing whatsoever to do with whether or not it has bad sectors on it or not.|
There is nothing in what you said that indicates it does have bad sectors.
The card may be write protected, and you may need to remove that protection.
Windows doesn't recognize RAW partitions as valid. Some devices do, such as some cameras - if that's what you're using it for you can re-format it with the camera. You can't get Windows to format the card unless it is partitioned a way Windows understands - usually that's FAT32 or FAT for a flashcard.
You can delete the partition using XP, then partition the card FAT or FAT32, then format it no problem, but if you are using the card in something such as a camera that doesn't want FAT32 or FAT partitioning on the card, you won't be able to use it with the camera or whatever it is.