2 hard drives; both failed, don't know what to do!

I was using Windows XP. Just today, for some reason my PC was restarted. I didn't know about this. I came to PC and it was restarting. But this time, Windows didn't load at all. So I took the re-installation CD and installed it. But during the installation process, I was asked to format my C: drive because it was damaged or had bad sectors. I did that but the formatting tool [Included in Windows XP CD] told me that I couldn't format. So tried to format using fdisk but didn't go as expected. So I tried the command Format C: and it seemed to format. So when trying to install again, it asked to format. But this time, it made it look like my other Hard Drive D: was formatted instead becasue the name I gave C: while formatting was showing in D:. I had tons of files in D: so didn't want to risk anything. So I tried to install, was asked to format, same error. So I tried to install on D but it asked to format. Had no choice so said yes, but it said formatting C: and same error. Now both of my hard drives are down, and I have no clue.

How am I using my computer now? For some reason, my Linux LiveCD [Suse with KDE] is working perfectly on the same computer. Iguess it doesn't store any temporary files on the hard drive. Anyone know what to do?