IMac Won't Boot - Grey Loading Bar - Disk Repair Fail

My 3 month old 27" iMac (late 2013) running Mavericks will not boot up. It was smooth sailing till I'm listening to music and my iMac starts slowing down and freezing. It was so bad I had to hard restart. After I booted up the problem continued. I ran Disk Utility and it told me to boot to Recovery and repair my disk. In Recovery I'm told that my drive can't be repaired and that I need to reset/restore it completely and I should back up all my important data. I restart to move some data over to an external HDD but instead all I get when I restart is the grey apple logo and a grey loading bar. When the bar is filled my computer shuts off. I'm not terribly concerned about my data because I run Time Machine and use a few cloud services but I do want to get this problem solved so I can get back to work. Please tell me there is a better solution than taking my iMac to the Apple Store 3 hours away.
Also let me just say that I have tried resetting SMC and have already looked through the Apple Support page for the grey loading bar. I'm just looking for some advice or some untried tricks.
Thanks

have already looked through the Apple Support page for the grey loading bar.
Did you try the suggestions mentioned in the KB Article?  Tried the suggestions mentioned in the "More like this" section over here?-------------->
My 3 month old 27" iMac
Please tell me there is a better solution than taking my iMac to the Apple Store 3 hours away.
You have 2 options since you are still under warranty.
#1 - CALL AC to see if they will send a repair tech to your home since you have an iMac.
#2 - Check to see if there are any AASPs closer.  AS are not the only places that repairs Macs.
AASP 
International AASP’s & Other Services
AASP's Outside of the USA
How to find your nearest Apple Authorized Service Provider (AASP)
GOOD LUCK!

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