Is usually a fault with the Hard Drive and not the DVD-Rom drive as you say as for the HDD its either buggered or it might be repairable look at this link:
As you state you can power up can't you?
From the link I posted try doing a chkdsk /r
In order to do so.
If you have a Windows XP Disk that came with your lappy, Go into the Bios and make sure your your bootable from the CD-Drive, F10 To Save Changes, Make sure you have your XP Disk in, and go though as if your doing a repair install but don't Log into recovery console and log on with a password (if there is one) onces thats done, type this command in.
It will check and correct any bad sectors on the disk.