One thing to look for when you boot from the installer and use Disk Utility is the SMART status. If it's anything but "Verified" then the HD is most likely failing.
Hopefully you're still under warranty?
Data recovery? That depends.
You can always try the "cheap" (and I mean that as a relative term) route. You can boot your laptop as a firewire device (AKA Target Mode) (by booting and holding down the T key) and hook it up to another Mac and try and use some robust disk utility software on it, such as Tech Tool Pro or Disk Warrior. However there's a chance that the HD won't mount.
You can also try the "cheap" (and I mean that as a relative term) route of pulling the drive out and hooking it up to an external device (or internal, assuming you have the correct adapters, as it's a 2.5" drive and desktop Macs use 3.5" drives), and trying to use data recovery software, again, assuming you can get the drive to mount.
And then there's the expensive solution, which means sending the HD to a data recovery house. The results are usually good, but it's VERY expensive. We're talking hundreds to THOUSANDS of dollars. It all depends on how critical your data is..
Which gets me to my soapbox. You need to have a backup solution. Everyone does. Without one.. well you see what happens. An easy and cheap solution with a Mac is to get an external firewire hard drive and jsut periodically clone your Mac onto a partition on the external. It's easy to do and will save your bacon. Get a backup solution.
And finally, you cannot hook this Mac up to a PC to try and fix it because PCs don't know how to read the disc format, HFS+. They can if if you buy MacDrive. I don't know what the results (good or bad) might be from trying to repair the drive from a PC.