I wouldn't advise sending it to Panasonic Repair center in Elgin. They will very likely take 3 months to send it back (are you listening Panasonic?)... and if you have my luck, it won't be fixed until the 2nd time you send it in.
If you are pretty sure that it is your hard drive, and are short of cash, I would recommend doing the upgrade fix yourself using software available on this forum. You can get an 80Gb drive for about $120 (will give you 80 hours recording time (instead of 30). If you are REALLY short of cash, you can get a 40Gb for less than $100.
One problem is, if your hard drive is definitely trashed you may not be able to copy the system area of the drive to clone it. If that is true you will need to get the partition 1 image from someone on the forum. Post that you need it and someone can send you a CD.
Actually .. email me. I should be able to send it to you. BTW - I wouldn't charge you. After all the work people have spent on the Hack, I could certainly afford a 15c CD and a couple of stamps.... Let me know. Happy to help anyone on the forum.
Good luck
Greg