It does sound as though the HD is fubar. The rough handling might have caused a mechanical head crash. It might be possible to "repair" it (mark sectors bad), but if it is mechanical, you'd only be buying time before another disk problems occurs.
What's on the other drives?
Can you install Windows on one of those drives? Say the WD 250GB, assuming that isn't the bad drive. Or pick a new drive for your OS (best scenario).
- 74ums tutorial: Clean Install Windows 7
- Remove suspect drive, connect drive with space, create a primary partition for the install....
- only have the one drive connected when you instlal windows to avoid other issues.
I supose you could rearrange a drive with available space while booted in Debian if you need to do that.
Other memebers might have other suggestions, so see what options they migh present
I would run diags on the non-boot drives too if they were in the machine when it was man-handled.
Good luck and post back with your results.