You have exhausted the things Recovery_HD or the Installer/Utilities DVD can do for you. To attempt to recover anything from that disk, you need a running version of Mac OS X, not just Recovery_HD.
You need to go out and BUY a new drive, and Install Mac OS X on that. Under US$100 for a 1TB WD Black, and under US$150 for a 2TB. Buy several while you are up.
Where will you put the recovered files, if you can get any? You may need an external enclosure as well.
I have an external drive that I used to keep files backup up on, again I'm a TARD, and no longer do. I've been messing around with the Recovery option when I boot and during this venture saw my main HD unmount and just would not do anything. After trying a few things I reset the system again and when I got back to recovery noticed that the drive had mounted again. I am now using disk utility to copy the entire contents of this main HD to the external drive. Est. time remaining is 12 hours. I did have the external filled up with some stuff but nothing I wasn't willing to trade for all of my applications (that came pre-installled when I bought the machine) and other files. I've read that even doing this isn't a fail proof way to solve the problem as their are still corrupted files, but Disk Utility said that my drive couldn't be repaired and to backup what I could and format the drive. I am hoping that backing up everything to this external drive will give me at least some oportunity to recover my apps, files etc. It also said that if disk utility couldn't fix the drive to boot from the CD and try it that way. Unfortunatly I downloaded Lion and don't have one. I just bought this HD about 2 years ago. Is a Seagate and I haven't had any problems from it. When my computer stopped working I had just been using it and just reset the computer. I am definitly going to get another drive but what are your thoughts on my ability to recover everything? I've heard there are some programs that can handle it.