How to use acronis true image wd to transfer os from bad hard to new one

You can not transfer a win installation from a damaged drive to a new one! The error message tells you that the installation is damaged and acronis would only transfer the damaged files to the new disk. You would end up with the same result on the new disk. Disconnect the old drive and install a fresh windows. If you are lucky you may be able to rescue some of her user data from the old disk later.

the diagnostics indicate only a hardware failure, thesde diagnostics took almost 24 hours to run, & if I remember correctly the failure was related to the hdd not "seeking" properly.

Here are the steps: http://kb.acronis.com/content/2931