My suggestion, and the simplest way to determine if the HDD is an issue, is to use another HDD, place the replacement loosely in the tower, obtain a HDD cloning software (Free - look on http://downloads.cnet.com ) or if you already have Acronis or other similar product and prefer to create a standalone CD) - connect the drive, and use the cloning software. If you have an image copy (Control Panel Win7 backup tool), and created a recovery CD, you can put the replacement HDD in place and boot the CD (or use the recovery console), and restore the image , but the replacement HDD must be equal or larger than the original.
Disconnect the original drive and boot on the replacement. You may come up in the recovery console (possible) where you would use "Troubleshoot" to correct booting.
It will work, and then you can see if the problem is outside of the Disk itself.