OK, that WD drive has fluid dynamic bearings (basically oil), not ball bearings. See if your drive sounded sort of like this: http://datacent.com/musicplayer.swf?...d_bearings.mp3
Win 7 ISO disk image (not sure which Home Premium you had):
Home Premium 64-bit: http://msft.digitalrivercontent.net/win/X17-58997.isoInstallation instructions: How to Install Windows 7 Without the Disc | PCWorld
Home Premium 32-bit: http://msft.digitalrivercontent.net/win/X17-58996.iso
Hope you're able to revive the HDD long enough to get your data back!
Bookmarks