Long answer - the exact same thing has happened to a friend of mine. It appears it is completely screwed. Apple will replace it (if under warrenty) but don't let you keep your old hard drive, so if you need to recover data from it you will have to send it to a data recovery company before sending it to apple.
When i tried the Disk Repair the HD was not present
Sometimes it boots into OSX but everything is going crazy, the top bit toolbar dissapears, no apps open. After a few min it just goes to a blue screen with the cog loading icon. I will try the "D" on startup and see if it does anything.
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