Downloaded Mountain Lion from App Store, but it says by disk is locked and won't let me choose the hard drive for installation

I'm struggling to get Mountain Lion installed on my machine, but what is worse is that it has essentially rendered my computer useless (and of course I need to use it urgently). After downloading and installing from the App Store, I have run into some significant problems.
On install, when prompted to "select the disk where you want to install OS X" the hard drive is greyed out and a message comes up that says "The disk is locked."
So when I back out of the install, I am given the option for Disk Utility, Reinstall OS X (same results as before)  or Restore from Backup (not backed up).
On the Disk Utility, I can hit Verify Disk and it names an error and says to hit Repair Disk. The error is an "Invalid Sibling Link. The volume Macintost HD was found corrupt and needs to be repaired." Unfortunately, Repair Disk is greyed out and I can't hit it.
What I want to do is just forget the entire process at this point and scrap the upgrade until I have time to figure out what is going on. Is there a way to abort at this point?
Thanks for any help!

Your welcome!
You should always have and keep an up to date backup.
Sounds like you need something a little stronger than Disk Utility. At this point I have no way of knowing if Disk Warrior can or will help.
Depends..!
If you do format and install, then Yes it will.
If you reinstall OS X, then No it will not.
Problem is that according to the Disk Utility message, I don't think that you will be able to install either 10.6 or 10.8.
Those are very good questions. The only bad questions are the ones you have to ask yourself.

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