How would an underwriter see this?

OK... here's the deal. Currently I have a Capital One card with a whopping $300 credit limit. The card is about 1.5 years old and unfortunatly I have one 30 day late and one 60 day late from Dec 02- Jan 03. I've tried disputing this with all three CRA's more than once and every single time it comes back verified. Right now it's my only late that's less than two years old. I'm looking at getting a mortgage and the loan officer was concerned about this because it's so recent. I'm wondering if anyone has any thoughts on how to fix it... here are my ideas...

1. Try a goodwill with Capital One (either through PFB or otherwise). From what I've read it's difficult or impossible to get lates removed via a goodwill with Capital One. To make matters worse, even though it's only showing these two lates, I haven't had a great payment history with them, so even if I send a goodwill their own internal records will show that I was late (albiet less than 30 days) fairly frequently with this account.

2. Close the account. I've been planning on closing the account at some point in the near future anyway because I don't need the low credit limit, nor the annual fee. I had been holding on to it to help my ratios, but I've payed down my other cards significantly, so I don't even need it for the ratios anymore. It's only 1.5 years old, and I have other much older cards, so I don't need it for the history either. What I don't know, however, is would closing this account hurt anything? Would it help at all? Someone told me that FICO and other's don't look at the payment history on closed accounts. If this is true, then maybe closing it would help.

Let me know what you think,
Brett