Every morning in LogWatch at the top is this error:

WARNING: Kernel Errors Present
hda: drive_cmd: error=0x04 { DriveStat...: 2Time(s)
hda: drive_cmd: status=0x51 { DriveReady SeekComplete Error }...: 2Time(s)

This is a 2.4 celeron with 80GB hard drive with RHE Linux.

I have asked SM to do a hardware check and they took my server offline and did one and reported all to be okay.

So what do I need to do next to fix the problem?

I have had the same error on several machines (1 Celeron there @ TP, and a couple diff ones at home). Ive never had a problem with it... I think its just overloads at a certain time on the drive that's causing it, and Ive been running a box for over 2 years now that still gets the errors.

I'd say just make sure you backup (I do), and ignore it.

These are usually errors from SMART checking drive status. If the drive is under heavy load, IE it's doing backups or something else that is slamming the disk with IO, it may not respond to status requests.