HD not recognized

I have a major problem with my second drive(primeraly used for work data). This drive is about 2 years old. The other day I rebooted and I got the error before loading windows. ATAPI (something similar to that) not recognized. I reset the bios to boot off the primary system drive.
The system run real slow and then after a few restarts it went back to normal. The when I went to access the drive I was asked if i wanted to format.

I have a feeling there maybe a corrupt file on their, well that or my HD is dead. It doesnt click, runs normal jut not detected by windows. Should I re-format system drive and re-install my OS? should I try spinrite? Or should I dream of someone giving me $500 (that I dont have) to send it off to a data ecovery center! lol