Computer problems- Install new hard drive or do diagnostic?

My Presario laptop crashed. What I found out so far - possible system confiquaration, imminent hard drive crash, repaired two sections of the hard drive , automatic repair won't work. Restored back to 2/15/13, and it won't recognize my CD backups. What I did was do an ESC shutdown, and it goes to the green bar with Microsoft and just goes back and forth. Safe mode comes up and when I try to load WP it just has the little circle circling.

I have no money. Do I just cut my losses and replace my hard drive, or do I spend the money for a computer place to do the whole diagnotic thing repair? I need to keep the bill down to under $200.

I just want internet access, and Word 2010 reinstalled so I can do my school work from home. Taking three online courses. .