The original 320GB hard drive completely died after 5 yrs of nearly continuous service. Found the ifixit site with great instructions and the necessary parts.
The parts arrived in a few days and the repair was easy and fast. Has the ufixit guide on my iPad and followed the step by step instructions. Finished in less than one hour. Everything booted up fine and was able to reinstall from my Time Capsule.
Read the entire repair steps first before proceeding to make sure you have everything.