iTunes Store Permissions stopping me from reinstalling my OS

Ok here is my situation. Last week my Macbook Pro (mid-2010) unexpectively crashed. I rebooted it up again and it worked for maybe 20 minutes before dying again. However after the second time that I booted it up it no longer would boot up showing the apple logo and loading almost halfway through before showing some text over the screen before continiously rebooting itself:

pid 1 exited (signal 0, exit 1)panic(cpu 1 caller 0xffffff80017c1cde): "launchd died\nState at Last Exception:\n\n"@/SourceCache/xnu/xnu-2782.20.48/bsd/kern/kern_exit.c:363

Debugger called: <panic>

uuid info: (then continue a long string of numbers and letters which I'd rather not type out but can later if it would help.hi

Anyway so after this I tried to boot up in Safe Mode, which did not work either, but fortunately was able to boot up in Recovery Mode. I then reset the PRAM, SMC and used the fsck -fy command. I also ran Disk Utility which was able to Verify but unable to repair the disk due to not being able to unmount it (trying to figure out how to do this will be my next step). None of this worked so I figured I would try and reinstalling the OS. Unfortunately my hard drive had too many files on it (yeah I know I had it too full but had never had problems before) in order to reinstall. I couldn't access files, read only, from Single User Mode so last night I was able to borrow a friend's Mac and used another old hard drive enclousure from a previous Macbook (it died a horribly death to orange juice) to gain access to my current hard drive and delete files. This was good for the other reason that I now know that I still have all of my files on my hard drive. After that late last night I returned home and attempted to reinstall the OS hoping to finally be able to boot back in when I encountered a different error saying that "This account is only valid for the U.S. iTunes Store. You will be redirected there." After this pop-up it does not redirect me anywhere. When I press install again I get a different message saying that "An error occurred while preparing the installation. Please try again." I checked the date in terminal but it is correct and reset the PRAM again but neither worked. This leads me to believe that the problem lies in the fact that the install program is unable to redirect me to the U.S. iTunes Store. I should note that I am from America but am currently living in Finland. So I updated my information on my Mac account to say that I am living in Finland but still recieve the same message whenever I try to reinstall that directs me nowhere after it occurs. At this point I'm at a loss at what further to do. I believe the problem with booting lies in the hard drive (although I could be incorrect) as it still is able to boot into Recovery Mode (although slowly) but not Safe Mode. I was wondering if I bought a new hard drive and made a clean install and then put my old hard drive in an enclousure and took documents and programs off it that way if it would work? However I am also concerned now that even doing a completely clean install on a fresh hard drive wouldn't work because of the iTunes Store permissions that are set and where I currently live so addressing that issue is a major concern of mine.

Thank You For Any Help,
Peter