Windows 7: none of the windows is working

when I boot from the Windows 7 install disk the disk loads the files, then gives me the 4 windows lights and say "windows is starting."
then i choose to "install setup"
ive chosen my partition and clicked "next"
every time while expanding windows it stops in 94% or 95%
ive tried many of the windows CD's but none of them are working
1 worked but while installing it restarted and it is coming
"SMART Error SATA-0
CAUTION - Hard Drive SELF MONITORING SYSTEM has reported that parameter has exceeded its normal operating range.
Press F1 to continue"
its comiing each time
what should i do?????
please help.....

My system : DELL vostro
2 gb ram
320gb HDD
1gb graphic card
2.9Ghz

I would Check the hard drive with the manufacturer's diagnostic tools.
Hard Drive Diagnostics Tools and Utilities (Storage) - TACKtech Corp.
Hard Drive Diagnostic Procedure

Hi,

As suggested by "theog", Kindly follow the Hard Drive diagnosics which would help us in isolating the issue. But if the diagnostics pass then you can try following the below mentioned steps:

1. Confirm Hard Drive is recognized in BIOS. If yes, follow next step. If NO, load BIOS defaults.
2. Boot to Safe mode and perform system restore. System Restore will affect Windows system files, programs, and registry settings only. If system restore fails or unable to access safe mode, follow next step.
3. Run Start Up repair from the URL mentioned: http://windows.microsoft.com/en-GB/windows-vista/Startup-Repair-frequently-asked-questions