scandisk error message

My laptop’s hard drive developed bad sectors and it excecutes scandisk. I get the error, “Scandisk encountered a data error reading the FAT on drive C. This error prevents Scan Disk from fixing this drive.” From there it bypasses the scandisk and attempts to load it’s OS, Microsoft Windows 98. It pauses for a while, goes to a blank screen and another error message appears, “cannot find file KRNL386.exe then shuts off automatically. How can I diagnose and repair if all programs need to be ran onwindows OS?