I have to erase my HD and start over???

I started installing Mountain Lion and got the warning about missing features. I decided to install ML anyway knowing I would be missing the features mentioned at apple.com/support/no-recovery, but after the restart about 5 minutes into the install - I received an error that ML could not be installed at all. I was directed to back to this page apple.com/support/no-recovery from the install app . . . am I to assume that I have no other choice but to wipe my HD and start over? Yikes!

Some background . . . I did not partition my HD. My original HD was recalled 4 months after I purchased my Mac (Seagate issue?) and the Apple Store swapped out the old drive for a new one. I haven't touched the internal HD via Disk Utility at all. I'm just not that savy a user.

A snapshot of my disk utility for the HD is included . . . any suggestions? Any way to avoid spending an entire day erasing HD . . . going from Leopard to Lion to Mountain Lion and then restoring ALL my photos, docs, music, etc.

Fingers-crossed . . .