I'm not so sure what the problem is, but I can explain the things I experienced and why I think it's HDD related.
While I was playing TrackMania, my PC completely froze up, CTRL + ALT + DEL didn't work, so I restarted my PC and then my PC couldn't boot up. I don't remember the error message it gave me, but It didn't want to start up so I decided to format the PC with Windows 7 (I had XP before that) and it was impossible to install the Windows 7 so I tried to install Windows XP again and the Windows XP gave me an error massage about the disk being damaged. Generally, that's it, if you want a full detail description, you can read on.
After that happen, I had a brilliant idea to install Xubuntu first and used the Disk Repair option on it and AGAIN it gave me the same error on Windows 7. After that I installed the Xubuntu and I installed the 7 after that and for some reason, it worked.... or at least I thought so. I installed uTorrent and put the newest versions of Ubuntu Desktop and Ubuntu Notebook editions and went to play God of War and after some time, I noticed that the torrent client was frozen. It wasn't uploading or downloading. I moved the mouse and I realized that the whole PC was frozen, not just the client. I used CTRL + ALT + DEL and nothing happen. I restarted the PC and my Windows 7 wouldn't boot up. I used the same Xubuntu trick again and decided to install Windows XP this time. After some time, the PC froze again and I restarted it manually and got the same Error Message. I can use the Xubuntu trick again, but from past experience I know it will froze up again.
Can someone please tell me what is the exact problem and if the HDD is the problem or something else might be causing, because the HDD was running for a little while and I wonder if I have to completely replace it.
You said XP gave an error message about the disk being damaged. Was this during or after installation?
You should try to backup important files if you haven't already, just in case. After that you can use the manufacturer's HDD diagnostic tool to analyze the drive. Most of them can be run in DOS so you won't have to reinstall Windows for that.