How to access files on hard drive?

Ok, so I have a Dell laptop. A few weeks ago it started acting funny. So I tried to back it up, it wouldnt allow me to do so. I used the installation disc to repair whatever was wrong with it. Worked fine for a bit.....BUT every time I would start the computer I would have two options: Windows 7 or Windows 7 Home Premium (recovered) I would always choose the first option, which when logged on had all my files and such on it. A few day's ago I tried to do the windows update. I went to restart my computer as I was told to. It got stuck on the Starting windows screen. I tried EVERYTHING short of throwing the laptop. It would keep restarting and try to do the start up repair. Which did nothing. So I completely shut the laptop off. When I restarted it I choose the second option (Windows 7 Home Premium Recovered) It started perfectly! BUT: None of my files were on it. I looked in all the "My Computer" stuff and found nothing. So, I called Dell. I am still under warranty. So they said my hard drive was bad and I needed a new one. And I asked about my files.. It would cost from 600-1000 for them to do a data recovery. Thats a little out of my price range. So after I spoke with them, I got to thinking... If it was my hard drive why would the one option (Windows 7 Home Premium Recovered) work and not the other?? So I went to Geek Squad. They told me to buy a Hard Drive Cover thingy and put the hard drive in it and pull the files using another computer. So I tried that. Hooked it up to my husbands computer and looked in just about all the files. I have two options on that Recovery E or OS G: Assuming G because my husbands is C or something like that. I have pictures and files on it that I need, and I need help or ideas. I cant afford the 600-1000 to have Dell pulll the stuff. Please help!