MacBook fails to start, shows folder with question mark or crossed-circle

My MacBook is only a few months old. It has recently refused to start. The battery is charged, and the power cord is attached. When turned on, it displays the gray screen as well as the apple logo, but not the loading circle. After a minute or two, it switches to either a crossed-circle (such as a no-smoking sign) or a folder with a question mark over it. It seems to cycle through those screens randomly. Has anyone come across this problem before? Any ideas?

It's not recognizing the hard drive. Boot from your system install DVD, run Disk First Aid from your Disk Utility and repair your permissions.
-Bmer
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