BSOD and HDD corruption - hard format not effective.

Hi all,
So it finally happened - my hard drive began to fail a few days ago, (after update patch KB2823324, managed to fix that but performance slowed).
Then began to get 'rinit.exe - corrupt File' message boxes, "The file or directory C:\Windows Live is corrupt and unreadable. Please run the Chkdsk utility" and "C:\Windows\Fonts\REFSPCL.TTF is corrupt . . . etc" followed by 'dwm.exe - System Warning' "Windows discovered a corruption in the file 'C:\Windows\System32\dxgi.dll'. This file has now been repaired, and shortly after -
'dwm.exe - Corrupt File' "The file or directory C\Windows\System32\dxgi.dll is corrupt and unreadable. Please run the Chkdsk utility." This was followed by a flurry of failed applications messages - then my BSOD.

Technical information:

*** STOP: 0x0000007E (0xFFFFFFFFC0000006, 0xFFFFF88000EDB0E9, 0xFFFFF880027E5738, 0xFFFFF880027E4F90)

*** CI.dll - Address FFFFF88000EDB0E9 base at FFFFF88000ECA000, Datestamp 4ce7c944

collecting data for crash dump . . .
Initializing disk for crash dump . . .

I was never able to retrieve the dump file, and after several blue screens and chkdsk/r,f,b etc, plus a hard format, windows installs from the disk with the warning "Windows cannot be installed to this disk. This disk may fail soon"
I have a nice Samsung 840 ssd, and Barracuda 500 ordered - before I install them, my concern is if KB2823324 did more damage than I thought and if the BIOS could have been compromised, so
Any advice from the Wise Sages of sevenforums would be greatly appreciated. Thanks.

Hi VistaKing,
Not any more, sorry. The Hard drive has been removed. I might try to get a data recovery company to take a look at it, but my concern is a possible reoccurrence of this issue when I install the 2 new drives.

Yeah I think they took out quite a few PCs with that one, although they removed the update pretty quickly from download section, a fix was easy to come by. I'm unsure if this was just coincidence - that the hard drive experienced accelerated corruption like that.
Do you think I should re-flash the bios firmware just to be safe?

Then, I may be doomed . . .

Ok, actually, the memory diagnostic is the only part from the System Recovery Options that I didn't try. I'll definitely run a memtest when I'm up and running again.
Thanks for the reply and the advice, VistaKing - I'm not so worried anymore. :)