Ok here is what I would do at this point... (and before I lost all my Important things. i.e. pictures/music/documents/etc.)
Since you stated that chkdsk reported bad sectors. Go to your local computer store and buy a new hard drive. Install it in your rig and leave the other drive in there as well. Now here is where it "sounds" complicated but is not.....
really 
If your computer is using IDE ribbons, big FAT grey ribbons, you will need to configure the drives before you can put the side panel back on... Both drives need to have their jumper set to "CS" (
Cable
Select), and the new one needs to go on the "Master" connection on the ribbon; consequently the "OLD" drive needs to go on the "Secondary/Slave" end of the SAME cable.
If your Puter is SATA, then no worries... Just plug it in and configure from the BIOS; New Drive Primary, OLD drive Secondary...
Load Windows, FRESH NEW CLEAN COPY, onto the new drive. Once that is complete, you can boot to your desktop and move ALL your files to their "New Home", from the old drive, using Windows Explorer.
You will still have to re-install EVERYTHING, program-wise, but you won't lose your important documents/pictures/music/etc.
When sectors start going bad on a HDD, you can bet it won't be long for the whole drive to Poop-out on you.... Besides that, drives are pretty cheap now and are running at 3Gb/s!
Good Luck!
Keep us posted........
Sven2157