4 day old iMac with a depressing seeming error message

I can't believe this. The iMac is only 4 days old. It's not loading at all - it gets to the grey Apple screen and then just keeps spinning.
I tried OPT + Power and it went to the grey screen
I tried Command + OPTION + P + R and it went to the spinning screen
I tried rebooting from the disc, and it got partway and then said:
INSTALL FAILED
Mac OS X could not be installed on your computer
I ran a Hardware Test and got this error code:
4MOT/1/40000003: HDD-1389
I googled it, and got 3 hits - only one of which is in English. Sigh. So I come here asking questions:
* What's gone wrong with my new toy?
* Can I do anything to fix it?
* If the computer is only 4 days old, what does this mean in terms of service/warranty?
* Why does this happen to me? Back in 2004 when I bought my iBook, its Logic board fritzed out on me within a fortnight......

I think that's what I'll have to do... but I really don't want to. No car = me carrying the box a kilometre up the road in the summer heat. Erk.

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4 day old iMac with a depressing seeming error message

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