Disk Check on every startup that fails.

So my HDD is failing?
Haven't even had the laptop for a year yet.

Thanks Bill and Golden, I'll have to do that diagnostic another time as I don't have any CDs/DVDs.

No, its not certain as that but run crystaldiskinfo or HDTune from time to time and keep a watch on that reallocated sector count, sudden sharp increases are a bad sign.

What you can do is run chkdksk from your win7 install dvd, if you have one.

Windows 7 & Vista - Running Checkdisk from a Boot CD/DVD or Windows Desktop

Run the HD diagnostics/repair CD test. That's why it was given (twice).

HD's can be repaired and returned to service by running the test in conjunction with Disk Check from the DVD or Repair CD Command Line.

Another solution to chkdsk loop at Startup is to run chkdsk from the DVD or Repair CD Command Line which is not dependent upon the OS files to run.

Bill2 said:

Though I do notice that the reallocated sector count (bad sectors) in that crystaldiskinfo report is above the threshold. Do yourself a favour, backup any critical data sitting on that disk.

I believe your sector counts including reallocated sectors are the RAW values. (Relocated sectors are generally the RAW values)
Furthermore thresholds can be set by the user based on what is accepatable to them.

On the surface your disk looks ok to me. That doesn't mean your file system is fine.

Run the file system check & repair plus the longer scan and repair for bad sectors as suggested earlier. The tools are part of Windows.

Note: Your HDD can fail unexpectedly at any time. Always have a backup - now is a good time.