Windows 7 Home 64bit suddenly incredibly slow, suggestions needed.

Hello,
So I have been using my HP Pavilion g6 laptop for around a year now, and so far it has been smooth sailing. However, around a day or two ago, my computer suddenly became unbearably slow on normal mode. I would try to open google chrome and it would freeze up my computer, and even opening the start menu took an incredible amount of time. This was a sudden onset of slowness and I cannot remember if I installed any updates that may have caused this. Using even safe mode, opening the uninstall part of control panel would take ages. I have tried many things to fix this:

1. Used SFC/scannow, caused a crash.
2. Used disk check on safe mode, says that I need to defrag 1% of the disk. However, It also says there is a SMART check failure. I am quite confused about this because when I looked again it said that the smart status was "good". (HP support center)
3. Deleted temporary files
4. Checked task manager to see if there was any processes that were taking up too much memory, it looks good normally. However, on normal mode whenever I would open chrome the CPU would spike to 60%

Specs are: AMD A6-3400M APU with Radeon graphics.
6gigs of RAM
Thanks!

Hello,
I've ran a CHKDSK and it says that there are several files that are unreadable. I would assume that this is because of my HD. There appears to be no virus on my computer. I am wondering if a system recovery or a clean install mght fix the problem (all my files are completley safe).
There may be something wrong with The SMART check, but i saw it on HP Support Assistant.
Anyways, I will continue to look for malware in the system.
UPDATE: The Smart was from the HP disk check. I don't think that it is a virus.
"The SMART threshold has been exceeded, and the drive may fail in the future"

Work through these additional Troubleshooting Steps for Windows 7

It sounds like the disk is on its way out. I would at least attempt to backup any important files before doing anything else. I would plan on getting a new hard drive and doing a fresh install.

So I'm going to try one more thing before throwing away the disk, a factory reset. I've already have important files on USB and DVD-R, so if this doesn't work, new HD. I am just wondering, before the HD failure I have recieved alot of 0x0000000000FE errors on BSOD. Does this have to do with anything with the HD?

Which steps given to test your HD in Troubleshooting Steps for Windows 7 did you complete?