Macbook not starting up, spinning on grey screen

Hi,
Before Christmas, I was entitled to a free battery from Apple. They told me to take my laptop to one of their external mechanics and they'd fit it for me while I wait. I did that and when I got home that day, I turned on the laptop but I was unable to get past the initial grey screen with the apple logo. The wheel would come up and just start spinning and spinning forever. I left it on for hours but still nothing.
Eventually, I discovered my hard drive may have got corrupted. How, I don't know, I'm inclined to blame the people who changed the battery as the minute they gave it back to me, it stopped working, but they're refusing to take any responsibility, neither are Apple.
I backed up the hard drive using disk utility and making a dmg of it but I'd left my laptop down in London for a few months so I didn't get around it sorting it until now. I've deleted the hard drive and re-installed OS Lion and the laptop began as if I'd just bought it. So I restored the dmg and now I'm back to square one, the spinning wheel and only being able to access disk utility by pressing CMD + R on startup.
I have so much stuff that I can't afford to lose on that dmg, what can I do to ensure I can get my laptop back to the way it was? If it's a lost cause, is there a way I can access the files and back them up one by one instead of as a dmg?
I have an appointment at the Apple Store on Wednesday but ideally I'd like to get this sorted myself so any help would be appreciated!
Thanks!
EDIT: Should also add, I'm trying to load it up in safe mode by holding shift but when I do this, the spinning wheel doesn't even appear, instead, the laptop just turns off after about 20 seconds.

Just an update on this...
The guy at the Apple store felt it could have been a corrupt file on the hard drive that triggered after the battery swap. Personally, I don't buy this as it was working fine before and I did regular checks and scans on all my files to ensure nothing like this would happen but there you go.
Anyway, somehow he made it so I could access my files, something to do with partioning the hard drive and whatnot. So I dragged the files onto my external, restarted everything (i.e, clean OS reinstall) and dragged them back on. Not the most ideal way as I have to install all my apps again but it could be worse.
Moral of the story is: when all else fails, complain to Apple in-store and don't take no for an answer!

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