After showing this to my older tech brother for him to listen to the noise he said the hard drive is just broke.
After a friend over skype perfectly described the sound its making he agrees.
I think the hard drive is just broke.
Yeah, in that case, you don't even have to run manufacturer's HD diagnostics on it to know it's broke, but you still could. At this point, it's probably too much of a risk to use it. Hopefully you backed up your data. You can also look in the event viewer to see if system errors came up.
What model/brand/serial is this hard drive?
And also, it's interesting to note, I was dealing with a hard drive that had basically a bad logical sector (a stuck sector), I tried everything to back up the data as a secondary drive in a windows environment (just didn't work). Finally I just loaded it up as a secondary drive in Linux Live cd. And I was able to copy the data. Makes me wonder why hard drives work better using Linux. Better copy tools, also.