Prosoft Data Rescue for  Hard Drive "No Valid Packages" in Disk Utility

I have a Macbook and I believe the hard drive has crashed. When I turn it on, I get the circle with line through it and the folder with question mark inside blinking.
I got the Install Disk 1 to boot up but can not verify the hard drive. I get the following message "No Valid Packages" and disk verification fails. I also checked the SMART status of the hard drive and it says "Not Supported".
I also can not re-install the operating system, as there is no hard drive that shows up to install it to when I try to run the installer disk.
I know I need a new hard drive, much bigger one. I'm purchasing this today, a 320gb Samsung M6 Series internal drive and a Western digital external 500gb WDE1U5000N.
I also want to purchase the Prosoft Data Rescue but have several questions:
1)I read the this can work if disk utility sees the hard drive. The hard drive is seen in disk utility, but like i said before the drive has failed and it can not mount. I've read other reviews that said Prosoft can still be used in this case, but I want to make sure..please define what is meant by "disk utility being unable to see the hard drive"...Does this mean "dead hard drive or the hard drive not physically being VISIBLE in disk utility (because mine is, I just can't mount or verify it)
2)If I can use Prosoft, when I put it in my damaged Macbook to recover the files, can I then put these files onto my new external drive? Or do I have to have another internal drive to do this? (I'm just buying 1 right now)...How do you get the recovered data off if I can not move it onto an external drive? Do I put it on a disk and then take the damaged hard drive out, put the new one in and then put it on the external?
Sorry for the questions but I want to buy today by 5pm so it ships by Friday to me to fix this ASAP, thanks!

I read the this can work if disk utility sees the hard drive.
Prosoft Data Rescue can help recover files after a software failure. (Usually related file directory problems.) It sounds, however, that you've experienced a hardware failure of your original hard drive. No amount of software can ever recover a hard drive from a hardware failure. If you really need to recover the data, a data recovery service may be able to help. The cost will depend on the steps needed to recover the data and how much data is recovered.
-Doug

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