Member Since: Jan 23, 2008
Location: Fort Worth, Texas
Mac Specs: 27" iMac i5, 3.2 GHz, iPad 3, iPhone 5c, 3 iPods, Yosemite
07-18-2013, 02:41 PM
That message in simple terms is telling you that you need a new hard drive. There is absolutely no sense in reformatting and reinstalling to a defective hard drive.
If you're concerned about recovering data on the drive and you have no backups, you can try using recovery software. However, there is no guaranty that recovery software will work especially if the drive can not be accessed.
Here's a list of data recovery software (note that none of them are inexpensive):
Disk Warrior 4
Disk Drill Pro
Data Rescue 3
Note that some of the apps above may have a demo version that you can download and try first before you buy.