I would guess that your system is the problem, but to be sure, you should try to mount the LG in another system (one that is stable and with up to date specs). If the LG is faulty, return it to the dealer. If not, you can go search for the hardware problem in your system.
It could be a bad IDE cable, wrong BIOS configuration, overloaded bus, faulty or insufficient power supply, bad memory to name but a few. But first try to find out if the drive or the system is to blame.