It looks like the read error is from the CD, which means that Toshiba sent you ab bad CD. You'll have to do 2 things - send them the picture you posted here, showing the error, and requesting a replacement - and obtain a CD with a hard disk testing program on it, preferably something like FDISK. Oh, and a lot of time - I once had FDISK run for 16 days on a 30 GB drive before it recovered about 3/4 of the data on the drive. (In that case I copied the data before I used a hammer and a blowtorch on the drive to make sure that no one else could ever get that data,(
If your drive is defective and under warranty, Toshiba is usually pretty good agbout replacing them. They're a good company and make good drives.
If it's out of warranty, a decent 600GB drive should cost you around $100.
In either case, the largest expediture is going to be your time in installing Windows or Linux to the new drive. And I hope you have all your important data backed up somewhere. Hardware is cheap - data isn't replaceable.