Hail, Class313! 
Like others have said before, it's clearly a head failure. Ye mentioned that ye dropped it on it's "nose", which would cause a lateral shock to the HDD itself, which in turn could possibly dislodge the (Magnetically held) heads from their parking positions and cause them to scratch the disc as they pass across.
From what has been discussed so far, it sounds to me like a group of lower sectors (Holding HDD config and op info, partition and boot sectors etc.) might've been destroyed. Chances are, at least one of the HDD heads (I'd guess head 0) has crashed as well, meaning that it's possibly gouged out a section of the physical disc itself.
Either way...Every time the disc spins now could cause more damage to the physical disc. So whatever ye do,
do NOT re-connect or otherwise power up the HDD for any reason whatsoever! Insted, store it somewhere safe (Preferably in it's original packaging if ye still have it) and treat it with the same amount of care ye would treat a fully functioning HDD.
From what I know of HDD technology, a lot of your data may still be recoverable. It mainly depends where on the disc your OS has put stuff (Windows tends to gravitate towards the lower sectors, I don't know about other OS's) in relation to the discs "landing zone"...But hopefully the only things that will have been lost are BPB, partition and boot sectors - Which are rarely customised by users anyway and should be restorable with most OS-native tools. (Those who do could knock a replacement up in two minutes using Debug!

)
Anyhow...The best way to recover thy data at this stage is to seek the aid of a professional data-recovery service, and make sure that they are a decent one! Recovering data from HDDs is a process where there is virtually no margin for error at all, and it makes sense to use a company with a good reputation. If ye work for a large firm or attend school/college, I'd recommend asking the I.T. department what their usual company is for this purpose.
Hints and tips for less volatile storage: 
Personally, I find that single HDDs aren't nearly as "break-proof" as I'd like them to be, so what I do at home is use two seperate internal HDDs and keep an up-to-date copy of my "volatile" data (Photos, personal video, documents etc.) on the secondary HDD in case of failure. Furthermore, I also back-up my documents to a secondary PC every week or so. Although this wouldn't protect me from simultaneous failure of both drives, it's a cheap option that offers a
little more security than having the one drive alone, and the secondary machine backup means that I'd only lose a maximum of 14-days data, and that's far preferable to losing ALL of my data!
Although the best form of storage
might be a RAID array, they are often very expensive for a home environment, and their operational method means that ye lose 33% of your total storage space due to parity checksums. A RAID array made of three 100GB discs would only give ye about 200GB available storage...But on that token, if one of these drives was to completely crash without warning, all of the data on that drive would be restored automatically from the other two discs as soon as ye put a new, fully working HDD in!
When it comes to backing up stuff for longer term "archival" storage, an external HDD handled with care can be a good option (I use a 120Gb 5.25" Iomega one) but I'd advise supplimenting this with backups to CD/DVD-ROM where possible. Don't worry so much about backing up publicly released music and movies to CD/DVD though...As long as ye keep a list of which albums/movies ye have (And a backup of the user licences if ye use a service like iTunes), ye could always obtain fresh copies of the material off of peer-to-peer networks insted, assuming said material is popular enough.

(All I back up are my photos, documents and similar "volatile" files. Using this approach, my backups are only 1.5Gb in size, as I don't really need 75Gb of music and movies in every damn backup after all!

)
Oh...And if ye are planning to transport data around in thy pocket or bag: Invest in a USB flash drive (Key) insted - They are both faster AND more resistant to damage than HDDs will ever be. Currently, USB keys range in size from about 256Mb to 32Gb on the open market, and I find that my
ancient 64Mb key serves me very well too.

Don't place thy full trust in HDD-based MP3-players either, as they're pretty much the
most likely of all HDD devices to fail - They do roll around in your pocket most of the time after all! Apple iPods are especially prone to HDD failure after 1-3 years of service, and my personal feelings on the subject suggest that such failures are actually programmed in to the iPod firmware by Apple to keep repeat sales high!

hock:
Farewell...And hope this has been of help to ye! It certainly took me long enough to type!

hock:

>> Death <<