HELP windows cannot start Hard drive test #1 -7 Fail

I cannot get my system to start even in any of the given options.
I am started in the set up utility and have done a hard drive self test with the status being # 1-07 Fail. What are my options? Do I have to lose all of my information that wasn't backed up? I had backed up the most important items the 24th , but I didn't "worry" about backing up my music. Which I just sold all of the CD's I'd ripped onto my comp. and don't want to have to buy again. Yes I know I should have backed up everything. am now kicking my own but and that's hard to do.

need to know if you have a sata hard drive......cable could be loose.
I have had it happen to me sevral times and was a pain till I seen it a time or two.
list some specs and we can try other things as well

I don't have any external drives. it is a laptop HP with intel centrino Duo . I could not get the blue screen to stay up long enough to read much of anything, so I took pic.s of it and have several other codes in parenthesis after the ........ED code. LMK if any of this helps.

Well, I guess then you need to reinstall windows asap.

Actually, I believe the #1-07 error is the result of SMART failing in the SATA controller. That is a mainboard issue, the hard drive may be just fine.

For assurance, you might try to test the drive with the diagnostics and repair tools from the drive manufacturer. They all offer something like Hitachi's DFT (drive fitness test) on their websites.

Do you have the latest bios update? Sometimes if the Hard drive is not installed properly things like this happen. Take it out and make sure it is connected properly and seated in the laptop correctly. Then try again, I've seen it be as simple as that. Make sure you have the latest bios update too. However I've heard of that happening too and it is a possibility to keep in mind. In most cases its incorrect installation, so try that.

Truth be known although it probably already was, I have no idea how to take the hard drive out. I'm a stay at home mom and an art major ta boot. I am , however, mechanicly inclined and can follow directions. Is it possible that the hard drive got knocked loose when in transit? I have since gotten to a screen that will let me run the recovery disk, however I tried and it gets stuck on the screen that says Hard disk preparation. Please wait and that is where it gets stuck. I also spoke with a tech at staples and he informed me that it was a virus. one he knew, and that it made a fake blue screen. If someone can kind of walk me through this I think I can fix it. I have taught myself how to fix several things including my parts of my car, but I'm afraid to do this without some professional help, so I came to you guys. Is it the door with the 3 cd's on it that contains the hard drive? OH and before I even get started. I still have one year of my warranty left, is this something that could be covered under that??