Disk failure and no Time Machine backup

Hi, I had hard disk failure on my iMac and I don't have Time Machine or any other backup.
By press 'Option' key, I may access Disk Utility, but failed if trying to verify or repair disk (see photo), and it asked me to '...Backup as many of your files as possible...'
I also tried to 'Reinstall OS X' via Internet, but the Mac seems getting frozen (spinning beachball) at 'Loading Installation Information' (see photo)
Could anyone please tell me how to '...Backup as many of your files as possible...'???
Do I have to disassemble iMac and pull the hard disk out......?
Thanks

Removal of the disk drive sounds like your only hope of recovery any data
You are probably going to need recovery software because it sounds like the directory is totally corrupted.
You can find information about a bunch of them at http://mac-data-recovery-software.esoftreviews.com
If the recovery software is not able to recovery enough of your data, there are services that can do that for you. But expect to pay big bucks for that, think like $$$$.
You are going to implement a backup plan after this episode?

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    com.apple.driver.AppleHDA    2.1.3f7
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    com.apple.driver.AGPM    100.12.42
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    com.apple.driver.AppleUpstreamUserClient    3.5.9
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    com.apple.driver.SMCMotionSensor    3.0.1d2
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    com.apple.driver.AppleSMCLMU    2.0.1d2
    com.apple.driver.AudioIPCDriver    1.2.1
    com.apple.driver.ACPI_SMC_PlatformPlugin    4.7.5d4
    com.apple.driver.AppleLPC    1.5.3
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