Insperon Laptop Wont Boot

My 3 month old Insperon laptop wont boot i was playing a game on it called Minecraft and had the trial version of Camisia studio converting a file to MP4 when the hard drive ( at least that is what I think it is) made a squealing similar to the sound that nails on a chalk board make. so i immediately forced it to shut down and when I went to reboot the laptop went to the windows seven boot logo fluctuated for a while then the screen momentarily went blank and a dos showed up and the I choose to do a system recover and this did it twice before saying that the problem could not be fixed along with a request to send the info to Microsoft and this error report

Problem Signature
Problem Event Name: StartupRepairOfline
Problem Signature 01: 6.1.7600.16385
Problem Signature 02: 6.1.7600.16385
Problem Signature 03: unknowen
Problem Signature 04: 21200601
Problem Signature 05: AutoFailover
Problem Signature 06: 2
Problem Signature 07: NoRootCause
OS Version: 6.1.7600.2.0.0.256.1
Locale ID: 1033

Any Help in this matter would be appreciated and I can not lose any of the data on this computer. I do have the original Boot Disk but my guardian wont let me use it is there any other way to solve the problem. I am not a rookie with computers but this one confuses me.

After a talk with a friend of mine I believe that the head on the hard drive went and had a little intersection with the disk severely scratching it corrupting some files i would like to avoid having to replace my hard drive at all costs I don't have the 400-500 dollars that it would cost.

If a boot disk is the only way to fix it then my dad will force me to take the thing to Best Buy and tell them let at it which I may as well get a new computer for so yeah I will resort to the boot disk option only if there is no other way (and it doesn't help that I have Ben instructed that I am not to touch the computer any more so yeah I was really looking for a way to fix it by just hitting some keys to bring up a special function during windows startup so I can determine the faulty files from there I can fix it. Wha I was thinking is is there any way to get the file and operation that is going on to somehow be displayed under the boot logo or entirely over it because I believe that the problem lays within one individual file that got half erased when the hard drive spazzed. However if the fixing was up to me I would have used the boot disk already.

Oooh that I already did that twice then on the second time it said that windows could not be automatically repaired and gave me the error code described here and the hard drive is a high speed 600gb drive that once again (right now I an against him) my dad would insist on going to best buy to do. If I could I would just buy the $150 hard drive and replace it myself. Where can I get like a disk or an iso file of windows 7 that I can boot of of a jump drive.

I can set this computer to boot off of jump drives for whatever reason/