Okay, It's definitely a HDD problem. I'm not able to do anything on the hard drive because I get that error every time I try to boot. I removed the HDD from the laptop and inserted it to another PC, gives exactly the same error.
So, my concerns now are:
1. I can't buy a hard drive at this point right now, so I'll just try to install Windows 7 ON a USB stick and use that stick as a hard drive (lol).
2. How to get my data back.