Mac SOS....somebody help, trouble installing lion

Hai, so yesterday I decided to update my Mac OS from 10.6.7 to 10.7(lion). I had the downloaded setup on my desktop and I clicked it to install and went through the motions of entering my password then it said it hard to restart to continue. So it restarts in setup mode and I click install and choose my hard disk and it starts saying 36mins to go....the progress bar doesn't move and eventually it tells me it cannot install because my harddisk is damaged and cannot be repaired. I tried using disk utility to repair the disk and it says "incorrect number of thread records". I tried erasing the disk it says it cannot be unmounted. So then I tried to startup up using 10.6.7 on the disk and it says not enough information to start up. I am at wits end right now. What to do what to do....

 

The macintosh Hd tht previously had snow leopard. Interesting, i just found out this is a common problem when tryin to upgrade. I opend my harddrive and formatted my disk from pc as ntfs then as mac journelled on another mac. So what do i do now

 

It just flashes a folder when i restart. I have no backup, i am screwed, what do i do