Bad Sectors on a hard drive

Hello,

          I have a Dell Inspiron 530 PC that had a hard drive failure, checked the drive with the Dell system disk and the drive has multiple read sector failures.  Based on Dell's website I installed a Seagate 1T Barracuda drive and tried to istall Vista from the Dell Start-up disk but it keeps hanging at Completing Installation.  I have tried changing the BIOS settings, but Phoenix Award Bios doesn't have a SATA setting, and nothing seems to work.  I have tried booting from the bad drive but now I cannot even get into safe mode.

          I contacted Seagate to try to get any missing drivers for the hard drive and they told me they do not have any and that the problem was that Vista was trying to find the drivers for the SATA controller.

          In addition I do not want to wipe out the old drive because there are file that I need to retrieve.  Outside of biting the bullet and buying Windows 7 is there anything I can do to get my system running with the disks that Dell provided?

Thanks.