Jamie, that error code means your hard disk has failed. You can use the hard disk diagnostic test in BIOS for further confirmation. that is also the reason why "it jusy says install the system disk." You can further verify this by setting your BIOS to boot from the optical drive and use something like a Linux Live disk. To repair it you will have to purchase a new SATA2 hard disk, remove the failed disk and install the new one. Follow these directions to reinstall your OS. Of course if you do not have the OS check on here how to obtain a copy. Hope this helps, good luck.