Help: grey screen with progress bar at startup, no success repairing in disk utility

I got my MacBook pro in December 2011 and never had an issue with it until this same thing happened in February 2013.
Basically, what happens is the computer starts to run really slowly, so I forced shut down. When I tried to power it back on, I can't get past a grey screen with a progrerss bar that doesn't move for about a minute, and then the computer just shuts back off. I tried to some research to figure out how to fix it myself (grateful for my ipad as a back-up computer) but I'm afraid I'm stuck now.
I tried running disk utility from recovery mode to verify and repair disk, but I only got errors saying "disk utility can't repair this disk. Back up as many of your files as possible, reformat the disk, and restore your backed up files." When this all happened in February, I bought an external HD for the Genius Bar dude to back up my files and do whatever he did over the course of 3 days to repair my system. Apparently it was only a temporary fix. However, like an idiot, even with all of that hassle, I never set up Time Machine (I know, I know, spare the lecture. I definitely will this time around). I'm really not too concerned about the data on my drive because most of my important stuff is on USB storage/my work computer. However, there are pictures on there that I'd really like to salvage.
So, before I do the walk of shame back into the Apple Store, can anyone offer a guide for saving my stuff and repairing my hard drive myself? And, if I have a worst case scenario on my hands, how expensive will it be to buy/install a new hard drive?...or just how to prevent it from happening in the future? Thanks in advance.

Klt10415 wrote:
I can't get past a grey screen with a progrerss bar that doesn't move for about a minute, and then the computer just shuts back off.
The fsck drive check at boot is failing to fix your drive, gets stuck and the hardware shuts down the machine if a OS isn't loaded in time.
"disk utility can't repair this disk. Back up as many of your files as possible, reformat the disk, and restore your backed up files."
Yep, it will either have to be replaced or zero erased and completely reformatted and everything installed again.
Erase, formatting, OS X installs on Mac's
How to reformat a used Mac
I never set up Time Machine
However, there are pictures on there that I'd really like to salvage.
That's ok, the TimeMachine likely would have backed up the corrupted data and fail to properly restore anyway.
Since you can boot from RecoveryHD, that means you can install OS X on a blank external powered drive and boot from it and access the internal drive for your files. Or as a last restort install Data Rescue ($100) and that can read even deleted files off the drive bypassing the file system etc.
.Create a data recovery/undelete external boot drive

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