From what you're saying. It sounds like your hard drive is corrupt. This happens if there's a sudden loss of power especially if the system is processing data. I don't think you need a new server. I don't think your hard drive is broken. Probably the Operating system just got corrupted. Not uncommon when the power goes out.

Which software disc are you putting in? It could be that you are using a driver disc. It wants you to put in the Operating System disc. (e.g. Windows 7 disc) HOWEVER, before you attempt a repair. Plug the hard drive into a different computer and copy the data if you don't have it backed up already. You won't be able to backup programs. If you already have the data backed up, go ahead with the repair.

If you are unable to repair, you can do a fresh install. Maybe use those extra hard drives in a RAID array this time.

It would help to know:
-What Operating system you have (e.g. Windows 7, SBS)
-What the disc says
-The exact error message

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