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You can reformat it using Disk Utility. That won't effect your main drive at all. Of course success will depend on why your drive failed in the first place. If it's actually dead then Disk Utility wont help you.
It won't even reapair in disk utility. Can I just restore it straight from disk utlity? That won't harm mu internal drive, correct??
There's no way it could harm your boot drive, which can't be erased when you're booted off it. The worst you can do in Disk Utility is select the wrong non-boot drive and erase it.
As for why you're having trouble repairing the drive, it sounds like it could be malfunctioning.
"The natural progress of things is for liberty to yield and government to gain ground." TJ