HP mini, hard drive problem?

Hello,

I have a HP Mini laptop. it worked in the morning when I was using it and now when I turn it on its starts up normal goes the the Windows XP logo screen scans for what ever it scans for for 7-8 seconds then very quickly a blue screen will flash on screen, honestly a the blue screen flashes so fast I cant even read anything that it says then it goes back to it start up routine this happens over and over again. I have tried to load it from my last known good configuration, also have tried to load it in safe mode and same thing happens.

When i press F10 upon start up and try and run a primary hard disk self test, it fails saying Test Finished : Failed Test Status: 7 (completed with the read element of the test failed)

Any one have any ideas what is going on? My hard drive garbage or something?

Thanks in advance/