Question: My hard drive had some bad sectors recently, so I backed up, re-formatted, and clean installed Mavericks.

Everything seemed to work fine until couple days ago when I tried to look at some photos I recently imported to iPhoto, things got stuck and sometimes wouldn't move at all for up to 40 seconds, I knew it was a hard drive issue.

I tried to use the os x disk util to verify and repair disk but it all came up green.

when I try to run time machine it transfers REALLY REALLY SLOW and than gets stuck and says backup failed.

what should I do?

Answer: 
I had the same problem as you few years ago. 

You definitely have the sympthoms of bad sectors. If you can't backup with Time Machine I advise you to back your data from the finder by yourself and skipping the files that can't be read. 

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Edit : You won't be able to backup all your files. You can't retrieve the data stored on the dead sectors.
Open Console in your Utility folder.

Type "disk" in the search (Filter) window

Look if you have disk I/O errors.

If you do see them (like a lots of them), your disk is bad, so back up, and get new disk.