Hard drive failure - Win 7 Backup

Hi Everyone,

Lately, whenever I shutdown Win 7 and then restart my laptop (Toshiba A665) it fails to boot. HDD light stays on and sometimes fail to recognize HDD in BIOS. It eventually WILL boot.

Now Win7 is say that the HDD has reported a failure, and tell me to avoid using the computer until I replace the HDD. I notice nothing while Win7 is running (slowdown or anything like that), but I get this Win7 message often.

I'm going to get another HDD after I do another backup. My question is:
If I use the windows backup can I boot from the backup DVD and then restore to the new HDD?

If not, what are your recommendations?

OR can I just do a straight copy from old HDD to new HDD?

Here is an image of the error message.​

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