flashing folder with question mark on start up

My 2011 iMac (OS 10.6.6) starts up to a flashing folder with a question mark. I have tried starting up in Recovery mode (command-R) and Internet Recovery mode (option-command-R) using an ethernet connection, and still get the flashing folder/question mark symbol. I just purchased a new 24" imac and would like to get the data off the old imac, using Target disk mode, but still just get that flashing folder. Thinking my hard drive is dead.