Problem with new iMac - help

I was so excited, finally received my new iMac yesterday. Worked great. Last night I left it copying a ton of files off my external drive. This morning, my desktop is up and everything looks normal. When I went to click on something, I got the colorful spinning beach ball. I tried to force quit with no success so I let it sit for a while before finally powering it down.
When it starts, I get a flashing folder with a question mark. (oh oh!) So, I boot of my OS Install DVD and go to Disk Utility, no hard drive shows up, only the CD Rom drive shows up. Help! Did my hard drive die overnight? That would suck.

 

Well' did about the only thing I could do, called Apple and they are sending a new one.
Back t o waiting again.