System Wont Boot

I have a problem with a Packard Bell computer running Windows 98. I ran scan disk and defrag a couple of weeks ago and the system became sluggish and had trouble shutting down. Last night the system crashed. I tried to re-boot and all I got was the BIOS screan showing the Packard Bell logo. I tried F1 to change the boot sequence so I could boot off the 98 CD but it would hang at the “Entering Setup Now” script line. I was thinking it was the BIOS flash since It wont go any farther but It does load and recognize my key board and mouse so I think it is getting through the BIOS. Do I need to get the latest Flash BIOS and if so, is it an autorun from the disk? I have never updated the BIOS and am not sure how to do it. Also, if it isn’tthe BIOS, do you think hte HD is fried? Can it be recovered?