System wont boot to windows. Got a blinking screen after bios page.

I realized some days ago that my system was slow in responding. But not long i got the blue screen with white writings about 'crash dump things'. So i press the power button to switch off and on again. I enter windows normally. So fast forward to 3 days later. The system was responding very slow again so i used the power button again. On putting it on, the system will just stop with a blinking cursor at the left top corner(after the bios page). So i used the recovery cd that came wt it to try repair. The only option that worked was 'startup repair' and 'command prompt'. The 'system restore', 'image restore' from the menu did not respond to selection. So i used the startup repair option. On finishing, i restarted the system. But now, after the bios page, what i got was a blinking empty screen with the fan blowing simultaneously as if it wants to work normally. The f8 thing isn't responding at all. Please any solution?

Check the hard drive with the manufacturer's diagnostic tools.
Hard Drive Diagnostics Tools and Utilities (Storage) - TACKtech Corp.
Hard Drive Diagnostic Procedure

If the HD is detected in BIOS setup, is still set first HD to boot, and passes the extended diagnostics CD scan linked by Theog above, then work through the other steps for Troubleshooting Windows 7 Failure to Start

Let just make an assumption that either the HD is not faulty or that it's faulty(though the computer is just about 2 months old)....... Will formating the HD and installing a new operating system solve all the problem???

Yes, and you'll have a vastly superior install to the factory preinstalled WIn7. Just be sure to follow the steps in Clean Reinstall - Factory OEM Windows 7 which includes a step to rescue files if necessary, everything that needs to be remembered to back up, how drivers are handled best in Win7, and the tools and methods which work best based on tens of thousands of installs we've helped with here.

If your licensed version on the PC is Starter shown in specs, then you'll need to download Win7 Home Premium x86 SP1 English Official ISO download, run the eicfg removal tool before burning to disk or flash stick so that it unlocks all versions so you can choose Starter.

During the booted Custom install you'll want to delete all partitions using the drive options shown in Steps 7 and 8 of Clean Install Windows 7 which are the illustrated steps for the actual install. If you don't have a partition scheme in mind then just make one large partition for install.

Be sure to put your wireless or LAN driver in backup in case it isn't provided by installer, so you can install it to get online, enable Automatically deliver drivers via Windows Update (Step 3) then run all rounds of Important and Optional Windows Updates. After requested reboots keep going back to check for more Updates until there are no more. Then if any drivers are still missing in Device Manager import them from the Support Downloads webpage for your model PC or device.