What you've discovered was the restore/recovery process for an OEM like Toshiba having resided on a hidden partition of your HD. Provided it wasn't infected as well or there is a true h/w fault it should have been able to reload the OS. Since it didn't you need to resolve the real cause. I suggest you get your hands on a Ubuntu "live sersion" disc, burn it using the .ISO image file that creates one. Use a friend's or your spare PC to d/l the file and properly it just to see if it will boot from the CD/DVD drive(1st boot device), it should as it suppose to be a bootable disc. If it passes that test alone, just booting-up suggests you have a bad HD or corrupted one. using the same talents to create the Ubuntu disc you can also create a rescue or repair disc. The repair disc is one made from a working Win7(same 32 or 64-bit version). The repair disc helps correct OS problems. Use that to start the repair process when it's menu appears if done right. -OR- check online for OS repair discs sold by vendors on top of any from Toshiba own support website, if still available. The other rescue discs are made by creating one found at these links:
I like Hiren's disc it also provides some AV pgms. if you like to scan and remove some virii, etc., again making a bootable Linux type disc.
Your last resort provided you don't have a true h/w based fault, is to wipe clean the HD using DBAN or KILLDISK. Once done, this totally removes all data, period and leaves a clean slate. Once done, you then use a recovery/restore disc from Toshiba to reload the OS like factory from day-1. Check Toshiba or online vendors for required disc for your laptop model#.
Of course, if you truly have a bad HD, replace it and follow the above restore/recovery steps.
I've had my Toshiba Qosmio x505-Q8102 Laptop for 3 years now and yesterday the hard disk failed due to a vicous virus and unfortunately I've lost the windows 7 recovery disc, but I've managed to discover a backup recovery option involving pushing the F12 key on startup and resetting the laptop to its original factory settings I thought this solved all my problems and everything was fine but, the lid accidentaly got closed today and the screen went black when I finally opened it, but it would not respond to anything. So I shut down my Toshiba laptop and now I've gotten the error again "A hard disk problem is preventing Windows from starting" I could try to restore it back to its factory settings, but that wouldn't solve the problem entirely it still will black screen at the windows login screen and I would have to restore it once again to its factory settings.