C: does not contain valid FAT
 

Starting months ago on reboot, computer sometimes
prompted "invalid boot diskette in A:, insert boot disk".
Thought boot sequence was getting hung up on floppy, so
moved floppy to last in line. But this started to occur
more often, til now, I can't boot. Using boot disk,
get "C: does not contain valid FAT", meaning all this
time, the problem was with the drive, not the floppy! Two
questions for the experts: 1) do I have to repartition
the hard drive and reinstall WMe, or is there a way to
retrieve any files that aren't on my last backup)? 2) is
the problem software related or caused by a deterioting
drive, in which case it's better in the long run to get a
new one?