That is a bios 1 machine. Yes that RFA corrupt is an indication that the hard drive has gone bad.
A replacement hard drive is required.
If nothing else has been done to the machine IE:clear/key tried the replacement of the hard drive in the top box is all that should be required.
It is also recommended to replace the coin battery in the top box at that time. You will need an old computer keyboard with the small ps2 plug. After replacement of the battery turn on the machine keep pressing the delete key until the bios screen shows then set the time and date, load optimized defaults and save.
You will need to provide the SB, SG, and VS chip numbers for a hard drive replacement. Also the RFA, ATA and BGM file numbers that were on the original drive. (If these were not written down when the machine was working you won't be able to get them.
http://newlifegames.com/nlg/index.php?topic=14054.0.PM me if you need a HD.
Rich