Did I  destroy my Hardrive? what are my options now?

Hello forum. I am in desperate need of your help today. I have a macbook air 11inch. Here is the story guys: Last night I was watching a youtube video as well as downloading a few videos. my Macbook air froze completely. I didnt even get the spinning wheel of death. the whole entire screen froze. The only thing that was moving on the screen was the black arrow key for the cursor. I had to force a shutdown by pressing the power key. When it restarted I got a gray screen for about one minute and then the flashing folder with a question mark showed up. ive had this before so I knew what to so. I rent into uitility mode by pressing command. it started the Internet recovery process. Everything worked fine so far, until I got to the screen where your suppossed to pick a drive to instal IOS lion on....there are no drives available in the box. I thought this was strange so I went back to the utilities screen to see if I could prepare or erase my disk drive.......And ALL OF MY HD DRIVES ARE GONE. I may be using the wrong terminology but this is the only thing listed:  . what did I do? where are my drives? my restore drives? my startup drives?. Ok next question: I am out of warranty and with limited funds. what can apple do for me? would calling a apple tech over the phone be any good? I can pay the $50.00 for the conversation. or would making the trip to a manhattan Genuis bar be worth it? can I pay out of pocket since im out of warranty?, Oh please help me please!-

I forgot to list the only drive (maybe using the wrong terminology). the only drive listed is:disk0  under that is a yellow box named mac OSX base system.

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