IMac won't see HDD, no matter what I do - Please help!!!!

Hi,
I have a 2009 iMac 24in (4GB RAM, 500GB 7200rpm) and ever since I upgraded to Snow Leopard, I have one problem after another. I have erased the HDD on numerous occasions, 7 and 35pass, due to it not seeing the HDD, have tested (iDisk) the HDD and all seems fine, reset PRAM & SMC, tried safe mode etc, but nothing seems to work.
It will boot from CD, but every time I try to install, it won't see the HDD. I have tried connect via Firewire to another Mac, but only on one occasion was the HDD seen; that said, I was able to retrieve data, so at least that's one saving grace.
It's still under warranty, so I'll be taking it to Apple and dumping it on them, but given that I cannot afford to buy another Mac to replace this one, I was hoping that someone could give me a few pointers to getting this going, whilst my MacBook Pro is being sorted out.
Yes, I have two Macs in trouble (MBP has black screen), but I need one working for business use, whilst the other is being sorted out.
I really hope that someone can help me with this one, as I'm pulling my hair out!!
Thanks in advance.

Hi,
There's no doubting the cost per GB, particularly from Apple, but would I be wrong to assume that my overall user experience would not be better with SSD, than with HDD; taking cost to one side of course.
I use my Macs for business and quite honestly, the downtime I have experienced is more costly than the extra cost per GB of an SSD.
Appreciate that SSD technology is fairly new, but I work in the Film and TV industry and nearly every new camera with on-board recording is using SSD technology and I don't hear of many complaints or issues, as far as reliability and stability of the technology is concerned.
I do accept that an SSD in a computer is going to be doing a helluva lot more work, but the technology has to be better right?
Ultimately, am I making a good move or another making another howler by opting for SSD over HDD?? I acknowledge that's very broad question and open to a lot of opinions/personal preferences etc, etc.
Thanks.

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