Hard drive problem?

I have a Toshiba Celeron a40/a45 series satellite laptop. It came with XP home. I haven't used it in a while so I decided now that I am retired I might play with it. When I booted up it told me I had a problem with hal.dll file. I put in the restore CD (it does not have a floppy) and restored it to the original files. Still have the same message. I went on the internet and purchased a complete new XP Home and started to format the drive and copy windows onto the C drive. After formatting, I got the message Drive C is corrupted and can not be repaired. Setup unable to format partition. The disk may be damaged. It continued to do a full format and then it stopped with "The problem seems to be caused by file: partmgr.sys" I again tried to use my restore disk that came with this computer and again after it booted it gave me "problem with hal.dll. My question is: If I could find the file hal.dll on my window disk how can I copy it to my C drive if I only have a DVD/CD drive? Any suggestions. P.S. I have a compaq desktop that I used on a daily bases, so I don't want to spend a lot of money to buy a hard drive.
Thanks