Hard drive failing in Studio 1537?

I have a Studio 1537 laptop.  The computer will turn on, but it displays a screen that says "Windows has failed to start."  (It has Vista installed.)

When I click on the Windows Repair option, the screen goes blank for a few moments, and then it returns to the screen that says "Windows failed to start".  If I click on the other option, to start normally, I get the Dell logo screen, and then again I get the "Windows failed to start" screen.  The Repair program doesn't seem to work at all.

If I press F8 and access the other Windows options, every one of them returns me to the "Windows failed to start" screen.  So, the only way to get beyond that screen is to use F12 and then Diagnostics.

When I run the main diagnostic program, I get the error code 2000-0146.  (I don't remember what the error code was the first time I ran diagnostics, but this is the code I got from subsequent attempts.)

When I run the Hardware Diagnostics tests, I get Fail results from most of the hard drive tests such as SMART Short Self Test and Read Test, and error codes such as 0F00: 0632, 0F00:0732, and 0F00: 0232.  Most of the error messages also say "DISK_0 - Interrupt Request (IRQ) not sent in time."  The tests always stop at block 07198720.

I presume this means that the hard drive is damaged beyond repair, but I thought I should check first.  It's toast, right?

Does anyone know if it's possible to retrieve files from this hard drive?  If so, how does that work?

Thanks for your assistance!