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Welcome to the club, Rob-S. It definitely does sound like your hard drive has passed on. You aren't the first, and definitely won't be the last to suffer this indignity.
But you may want to doublecheck your BIOS to make sure that it's set properly, also make sure that the connectors to the hard drive and the motherboard are properly seated, sometimes they'll come loose cuz the installer was idiotic enough not to make sure it's in all the way. (happened to me on a few compaq computers here at work)
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