If you google CLONEZILLA and add words like SKIP BAD SECTORS you see it can be done.
But I'd look at http://forums.cnet.com/7723-7588_102-354911.html?tag=contentBody;threadListing
As to the OPERATING SYSTEM you can order restore media for a fraction of the price of a new OS License.
Bob
Hi,
I have a HP G60-530US laptop with a 250GB HD. Unfortunately my laptop was dropped and the HD is damaged. At times the laptop doesn't recognize that the HD exists and at tomes it does. I need to buy a new HD and I want to make a backup or a mirror image of the system but the partition where the backup files are is where it was damaged. When I try to make a backup, it only makes about 3 DVDs and then says the backup failed. Is that enough? Is my backup basically failed and my info lost? When I get a new HD can it transfer what I have so far of Windows 7 Home Premium or do I have to buy another copy? My laptop is out of warranty. Thanks for any help I get on this matter.

Chowhound
Comic Vine
GameFAQs
GameSpot
Giant Bomb
TechRepublic