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HD Failure and what to do now

Damn, I was away for the weekend, came back to find my mastering DAW squealing. It won't boot and won't fix. It had only one drive, partitioned. I can see my files on the drive via the recovery disc so I'm now wondering how to recover my data? Do I install a new HD for the OS, and put the bad HD in another slot. Will I be able to grab the files off of it?

Windows 7 Pro 64