ASUS AI Recovery System trouble; error 1024

Hello everyone~

I'm new here and I hope that at least one person will be able to help me here as I'm at my wits' end. I'm the biggest technology fool ever and so I'm quite sensitive right now... I apologize in advance should I misunderstand something or ask obvious questions.

Last month (2012.09.15), I've purchased an ASUS N76VM-V2G-T1071V i5 3210M Ivy-Bridge, Windows 7 Home Premium for nearly $950. Two weeks later, my laptop started acting up: right-click wouldn't work (right-clicking on any file would cause my laptop to freeze or general long loading times for the right-click menu), lags while playing video files, and opening 'Computer' would take at least 7 minutes.

I decided to do a system restore to a previous date, hoping it would fix my problem. However, the process got stuck, my laptop froze, and I had to a hard boot which evidently messed up my laptop's hard drive. In addition, I got the "Unmountable Boot Volume" blue screen. I burned the self-created recovery iso's on 6 DVDs on day one. I could boot up and start the AI Recovery Restore with those DVDs just fine, but when I got to the point where I had to choose between "Recover Windows to first partition only", "Recover Windows to entire HD" and "Recover Windows to entire HD with two partitions", I chose the third one and then the process got stuck at 4%-6%. I got some kind of "ERROR = 121" text. It retried to restore that .dll file (sorry, forgot name. was a huge file name) a few more times and afterwards a box popped up with "SELECT DISK ERROR 0". I tried to do that another three times and now ASUS won't even read the first recovery disc. It aborts after 13 seconds and now an "1024" error pops up.

Anyone any advice? Is my HD broken? Should I contact ASUS and send them my laptop so they can repair it? I googled and nothing came up. I'm moving tomorrow and I can't take my desktop with me... Thanks in advance, Sevenforums members. I'm just so angry that a nearly $950 device broke within 4 weeks... Is this how our technology is like nowadays? Meh...

Should I contact ASUS and send them my laptop so they can repair it?

YES, or return to Retailer.

I'm gonna say this because it can help another people.
I have a Asus N56VM-S4233V and I tried to install windows 8, but ocurred a problem, so I tried go back to windows 7 with Ai Recovery DVD. After 10 seconds, it said about error 1024. The solution that I found is format or do another partition on your hard drive (you can do that with Hiren boot CD). Well it worked for me :)
It can work for you (or not)