First, most likely, your hard drive is dead. Get a new one before you reinstall the system.
Second, try to set your "dead" drive as a slave to see if it shows up as second drive. You may rescue some files from it. After that, throw the hard drive to trash. It is not worth it to use an unreliable drive when the new drive is so cheap.
Once you reinstall system and other programs, back up the whole system with a ghost program. If something happens, it is much easier to restore than to install everything.
Good luck