Factory Resetting Sony Vaio Error 320 and more problems

Sony Vaio Laptop Model: VPCEH2EFX, 2.2 GHz, 4GB RAM, 596GB HDD, Windows 7 Home Premium.

Took everything and transferred into external hard drive. Restarted Vaio and repeatedly pressed F10 for the Vaio Care Rescue>Start Recovery Wizard>Skip Rescue>Yes, I'm Sure>Start Recovery!

45% into it, freezes and 30 minutes later says Error 320 - An error occurred, that I should restart the computer and try again.

Restarted Vaio and suddenly, "No Operating System Found". Tried Vaio Care Rescue again = same result.

Checked online - took out and reinstalled the RAM and again nothing. Took out and reinstalled the HardDrive and again nothing. Went back into the Vaio Care Rescue>Tools>VAIO Hardware Diagnostics>Quick Test = Passed with flying colors! HardDrive is FINE!

Restarted the laptop and pressed the F2 button for the InsydeH20 Setup Utility>Boot>Boot Configuration(I enabled it), Network Boot(Still Disabled) FYI - these are the only two options available under "Boot Configuration". I saw on YouTube a guy had a similar problem but had three options under Boot Config.. Is there anything else to do? Please help.....

Everything was working well, at first. I logged in and transferred all my movies, songs, pictures and documents to my external hard drive. I just wanted to restore my laptop to factory settings.

I've tried factory resetting it twice with the same result. I then attempted to format the hard drive and even partitioning the C:// drive to create a D:// drive but after 45% into formatting....it pauses and 30min to an hour later...Same error 320 appears. I took out everything I needed so I just want to get the laptop working again.

I read a similar post here but no actual solution. Think everyone just gave up and concluded that the only solution for this is to buy an Windows 7 OS and reinstall it. Had I known it would've given me this much trouble just to factory reset it, I wouldn't have done this at all.

If you want to run Factory Recovery then always make Recovery media because often it will fail when run from hard drive, so you need a backup method.

However Factory Recovery is the worst possible install of Win7 one can have, larded with bloatware and duplicate utilities which interfere with much better versions built into Win7, so you're much better off doing a Clean Reinstall Windows 7 anyway.

Just stick with the steps, tools and methods given and you'll get and keep a perfect install for as long as you do, just like a million others have without a single complaint.

Just to be sure - the way to get my laptop going again is to do a clean reinstall of Windows 7, correct? I don't know whether or not this "solves" the problem. I will try do the specified task and update you all shortly. Thanks.

Be sure to stick with the steps in the blue link to Clean Reinstall Windows 7 so you'll get and keep a perfect install.

Read also the Special Note for Vaio Owners at the end.

Ask back any questions you have before you begin, and as you go.