I am getting a hard drive failure error saying "the system has detected a problem with one or mopre installed IDE/SATA hard disks" The a windows 7 recovery box pops up doing a sysem perfomance and recommends I buy advanced module at about $79 to fix it. I think I am losing icons off my desktop as well as the favorites in internet explorer. I also noticed I have no more documents saved. What do I do?!

Sounds like you caught some malware or virus based on your description. Suggest you to run MSE or some third party spyware uitlity or AV

Hi, I suspect the computer infected by Windows Diagnostic. It is a fake computer analysis and optimization program that displays fake information in order to scare you into believing that there is an issue with your computer. If you want to remove it manually, please refer to this link. http://www.2-spyware.com/remove-windows-diagnostic.html Note: Since the website is not hosted by Microsoft, the link may change without notice. Microsoft does not guarantee the accuracy of this information. If the malware still cannot be removed successfully, you can contact PCSafety phone support. For support within the United States and Canada, call toll-free (866) PCSAFETY (727-2338). Best Regards, Niki Please remember to click "Mark as Answer" on the post that helps you, and to click "Unmark as Answer" if a marked post does not actually answer your question. This can be beneficial to other community members reading the thread.

This looks a lot like Windows Fix Disk scamware, there's a full uninstall routine listed at Bleepingcomputer