An error prevented a required compliance check from completing

I'm trying to repair install Windows 7 but every time I'm getting the error "An error prevented a required compliance check from completing". I'm dual booting it with Ubuntu 14.04-lts and sfc /readonly gave the following output (greped the line with [SR] in it). There are many badblocks (like 70 or more) in my 500GB hard disk, but I checked for it (using chkdsk) few weeks ago. Please help.

The hard drive is prime suspect. Run the maker's HD Diagnostic CD scan followed by another full Disk Check. If either fail again then I'd replace the HD because you can never trust one after it has failed both tests. I would even replace it if it failed Disk Check with that many errors. You didn't say if they were all repaired. If not then it should have already been replaced.

Hard disk model =TOSHIBA MQ01ABD050, but the link Storage Products | Part Naming Conventions | TOSHIBA Semiconductor & Storage Products Company | Americas is not taking me anywhere useful.

Go ahead and download Seagate Seatools which works for all makes,
burn to CD with Windows Image Burner, boot and do a full scan.

It's showing me "no hard drive found". Non of the button was active.

Is the HD detected in BIOS setup? If not you'll need to see if you can get it detected by changing the cable, port, etc.

I think it is detected in BIOS setup. I'm booting from that HD.

I used Windows Image Burner. Sorry I didn't mention earlier that no button was working except exit button.

My BIOS does not have any such options (like "SATA Operation" or "Advanced"). BIOS vendor: Insyde.