I'm trying to copy a folder using cp -r * /home/user2, but I get the following error:

hda: task_in_intr: status=0x59 { DriveReady SeekComplete Data Request Error}
hda: task_in_intr: error=0x40 { UncorrectableError }, LBAsect =38621331, sector=38621331
ide: failed opcode was: unkknown
end_request: I/O error, dev hda, sector 38621331
hda: task_in_intr: status=0x59 { DriveReady SeekComplete Data Request Error}
hda: task_in_intr: error=0x40 { UncorrectableError }, LBAsect =38621331, sector=38621331
ide: failed opcode was: unkknown
end_request: I/O error, dev hda, sector 38621331
cp: reading 'directory/Name Of Folder/Program/blha.cab': Input/output error

What does this mean and how to fix it?

Uh oh! Those errors usually signal a fault in the hard drive. It might be a good idea to run fsck on the affected device and see if it can repair the problems.
cheers,
jdk