Quote From researcherboy:
My issue is basically it's my first choice institution - i've had my heart set on it, love the facilities/library/location/campus/research that goes on there. I can handle the supervisor thing - my concern is just the failure part
You're not really handling the situation if you're already thinking it's possible the supervisor may be spiteful enough to fail you. It's starting out of a VERY bad footing.
As I said a supervisor can't fail you, but they could prevent you from progressing into your 2/3rd year, or not provide you with help.
A supervisor is the key element in a PhD - not the university/facilities etc. - and this is something many students overlook.
If your relationship with your supervisor has taken a downturn now - it is possible they are not really that interested in supervising you.
If the academic is well-known, then having a failed/drop-out PhD student will not make any different to how they are perceived.