startup repair runs, cant use pc, no safe mode

every time i turn on my computer, I first get a message from AMI - "SATA 1:S.M.A.R.T. Status BAD". When I press F1 to continue, it progresses normally, until recently when i got "windows is loading files" then "startup repair" instead.

Startup Repair searches, then finds a hard disk problem which it cant fix, and I can choose to reboot or try "advanced options"
I've already tried safe mode, same thing happens.

I've looked around, still not sure how to proceed - what caused this and can it be fixed without replacing my hardware?

Welcome to Windows Seven Forums.

Have a look at this tutorial, which gives you various options for running a disk check on your hard drive.

Disk Check

However, I think you also need to be prepared to face the fact that your hard drive may need replacing.

In addition to running Disk Check from System Recovery Options Command Line, you might be able to repair your HD enough to recover it's data by running the maker's HD Diagnostic/Repair extended CD scan.

I would use the Win7 DVD or System Repair Disk to run the Disk Check, since you can also try to browse in to rescue your files using it to Copy & Paste - in Windows Recovery Console.

Then replace the HD, boot DVD or Recovery Disks to Clean Install Windows 7 or Clean Reinstall Windows 7 Factory OEM