CRC / Blue Screen Error

Hello,

I have a serious problem with my Lenovo N200 3000 Laptop.

I have started getting the Blue Screen of Death errors, more regularly recently.
It occurs when i try to run a few games, and recently started when i tried to copy data of the hard drive, or run Nero Smartstart.
the Blue screen error states,
Kernel Stack Inpage Error
Stop 0X0000007 . . . .

I have now removed the hard drive and connected it to another laptop through USB and when i try to copy data across from the hard drive to the laptop, i get the cyclic Redundancy error.
I have noticed copying smaller amounts of data works ok, so im slogging away and copying the data i require in small portions at a time.

My question is,

I intend to reload windows on this hard drive, once i have completed the transfer of all important info.
Will formatting the hard drive, and reloading windows resolve the Blue Screen errors, and the Cyclic Redundancy error, or do i have to go and buy a new hard disk?