Apple announced a new Repair Extension Program for MacBooks sold between May 2006 and December 2007. The issue is that the hard drives mail fail under certain conditions. The extension program will cover MacBooks for 3 years from their original date (Applecare) or until August 15, 2010 (whichever is longer). Details are posted here.
If you have a MacBook that has a hard drive that has failed, contact Virtua Computers, or your local Authorized Service Provider.