MacBook won't start - gets to grey screen with clicking noise.

I think I know the answer to this one - my hard drive is fried. But before I head to the Apple Store I'd thought I'd see if anyone else had any ideas of what I can try.
I was happily surfing the web when my computer froze. I could move the mouse cursor, but everything else was unresponsive. Opt-Cmd-Esc would not work, so I had to force a restart with the power button.
The computer restarted, I got the Apple chime, but then all I could hear was a clicking. I've tried restarting several times, but to no avail.
I've also tried:
Attempting to boot into a BootCamp partition.
PRAM reset.
Boot into safe mode.
Boot from my Leopard disk (spins up, but then ejects).
Boot from my original MacBook disk (spins up, but then ejects).
Boot into target mode.
The best I've got is a flashing folder with a question mark, mostly I'm just getting a grey screen.
Can anyone else offer any ideas to try?
And, assuming I have to return it (it's under a year old), what is the story? Do I just get a replacement, or is it sent off for repair? Do I need my receipt, or can they verify ownership from my credit card/serial number? Do I need a Genius Bar appointment, or do I just show up?
Sorry for all these questions, this is the first real problem I've had with a Mac and it's come at exactly the time I need to have a laptop!

That happened to my macbook too!!!!
I emptyed my trash can, it had over 1000 items there and it took a really long time to erase all of them. Eventually it was done. I turned it off, went to bed, next morning, my reliable Macbook would not start! Grey screen, apple logo, a spinning wheel. i can hear some clicking mechanical sound.
I loaded my installation cd, pressed C key while starting. It did loaded the cd, followed the screen of installation... It failed the first time, aborted half way. I had to do it again. Second time, it did go through without issue. But now, it always takes WAY long to boot, the system is very slow, very unresponsive, I am very scared to shut down the system, i dont know if next time it will reboot again.
My macbook has been very stable and reliable, compared to my PC and Dell notebooks. It is only 1.5 year old, It is not under warranty anymore. I guess it is hard disk problem most likely. There is not even one Apple Store in Idaho. Should I go out of state to fix it? how much will it cost? I have been a long time PC user and i can fix it myself if it were a PC, I love apple but really have no idea when it has problems.

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