hi, yeah by the looks of it the hard drive it gone. these are the options you have left
find another computer and use bartep to make a bootbable cd and backup your data.
option two would be is to take out the hard drive from this computer change the jumper which is the little pin in the middle and make it slave. put the hard drive on another computer use the ide cable and then you can do a disk check.
you can also try this when your pc is booting press f8 to ge the advance utility or f6 try f8 first and choose safemode + command line and there if it does work
type chkdsk /r
also when your pc is booting press f1, del, or f10 depending on the bios and check that your hdd is detected. another option is to replace the IDE cable but i wouldn't recommend that unless you know what you are doing.
best options is to make a bootable cd using bartpe backup your data and purchase a new hard drive or the other options mentioned above.
here is a good video
but if you are unsure get someone with some knowledge to do it. i am sorry i couln't be more of help but i hope everything goes well.