HELP! Crash On startup

Ok, so about a week ago I turn on my PC and it went to the safe mode screen. I didn't think this was that abnormal because the night before while I was shutting down, the power went out on me so I figured it was complaing about that. So I said startup at the last working configuration and it went to the Xp loading screen... then all of a sudden it flashed the blue error screen and went back to start up to start the process again. I tried all the differant types of safe mode and it still didn't work. So I decided to reformat so I put in my windows disk and went to repair and then typed format C:. It went to the formatting screen but sat there at 0% until it went to an error screen saying that partmgr.exe is not there or corrupt. So then I tried the other way of formatting by trying to reinstall windows. Still didn't work. So I then tried the Western digital Diag and it said I was damaged and it couldn't repair but it came up with a differant error each time. So then I tried deleting my partitions (2) and then tried to format but of course that didn't work. So I am asking you what should I do! I have a 120 GB Western Digital 7500 rpm 2 mb cache. Running Windows XP home. Oh yeah and my HD is still under warantee if worst comes to worst. But I'd rather fix it.