A method for identifying defective data sectors in a disk drive comprising generating a test pattern on a portion of a disk surface; reading the test pattern on the portion to detect an error and if an error is detected: associating the error with a physical location on the portion to identify a defective area unsuitable for user data; and assigning a severity category to the defective area. The method further comprises providing a physical defect list (P-list) for listing each defective area, the P-list having a predetermined limit to restrict a number of P-list entries; and posting the defective areas having a first severity category to the P-list and if the P-list limit is not exceeded by the first severity category entries: posting defective areas having a second severity category to the P-list.