XBOX 360 Hard Drive Troubleshooting

My Xbox 360 Disk Drive Is Giving Me A E68 Error Code.. (Single Flashing Red Light) ..So I am no able to access my hard drive,

Q#1 : Is there a way to salvage this HDD? (FUJITSU 120G)

Q#2 : Is there a way to access the old HARDDRIVE and save all the data using my PC?

Q#3 : If I have to start completely over, is there some kind of OS that I need to reinstall so that I can use a new HDD on the 360?

Thanks for your help.