Macbook Hard Drive Problem??

I have a MacBook (the first black one that came out) that I bought in 2007. I was watching movies on it and it froze up so I shut it down by holding the power button. When I tried turning it back on, it just showed a grey screen and made this weird clicking noise. After about 10 minutes of shutting it on and off, hoping it would fix itself, the clicking noise was replaced by a scratching sound and in the middle of the grey screen, a folder with a question mark appeared. After reading through some forums, i looked for my install discs. I inserted the install disc 1 and the folder with a question mark was replaced by an apple and it took me to the Mac OS X installer, but when I get to "Select a Destination" nothing shows up and I can't continue.
Does this mean my hard drive is dead? and all I have to do it get it replaced?

That'd be my guess. Clicking is classic hard drive failure sound.

Hope you had a backup.

No I didn't have backup but that's not a big deal for me. I'm kind of lost when it comes to MacBook hardware, would you have any suggestions? like a website or a company?

OWC, Amazon, Newegg.

If you don't have a clue about hard drives - just head to OWC, pick the size you want and away you go.

Your hard drive is most likely dead. I had the same thing happen to me with the MacBook I'm using now about six months ago. It's the same model but white enclosure.

I'd suggest NOT going to Apple. They'll have what you want but overpriced. Check Amazon. That's where I got mine. Just make sure you're getting the right size drive. Take yours out and get the specs before you buy another.