Compaq Presario V2310 Troubles...

My sister's laptop stopped working last nigt and today, it starts up but when you go to login in notmal mode, it shuts down. I've tried system restore, and that doesn't help. After checking running the hard-drive self-check in the BIOS, it says "#1- 07 fail." It let's you login in Safe Mode and runs pretty slow...So is there a way to fix it or will she have to swap the hard-drive?

Thanks for any help :)