Bootable ISO

Hey guys,
So my laptop hard drive appeared to fail last weekend, a problem I believe do to a bad lenovo motion sensor driver. Nevertheless I've been told to make a bootable iso DVD disk. My main problem is that I don't have the install disk/information. I am running 7 Ultimate, and was wondering if there is a protocol I should follow when making a bootable iso?
Also just so my understanding is clear, in the case that the OS becomes corrupted on the hard drive, the bootable disk enables me to run the OS from the disk and access the hard drive right?
Thanks

First I would run the full diagnostics/repair CD scan from the HD maker: Hard Drive Diagnostics Tools and Utilities (Storage) - TACKtech Corp.

If you can still access Win7, I would save a Win7 Backup image externally which can be reimaged to the HD or a replacement using the Win7 install DVD or Repair CD, which can be made in the same Backup Center.

If the PC came with Win7, there may be a way to create Factory Recovery Disks off of the Recovery partition. Read your manual or browse for the utility to make a Lenovo Recovery disk set.

If you have a Win7 DVD then you can always reinstall your version using the activation key on the machine or the DVD insert.

Hopefully this helps answer your question which is somewhat unclear. Ask anything else you like.