Macintosh HD does not show up in SD

[frozen]

Wasn't sure what to title it....

I tried to start up my iMac 24" circa 2007 running Lion. It would not go past the apple icon, so I ran Disc Warrior and then TechTool Pro and got as far as Volume Rebuild which failed.

Then I rebooted with the original apple disc and ran disc utility. Somewhere in that program I got a message "Invalid Node Structure" and it could not fix it.

So I restarted with SD and when I selected
Copy SD to______ it did not show the Macintosh HD as a choice.

Funnily enough the problem started when I tried to get into my bank account and could not get in which I discovered was because the password was wrong because my keyboard was missing certain letters. I replaced the KB with one I had lying around, after I started into the repair process.

SO the immediate issue is copying SD to the HD. How do I fix the Mac HD not showing up?
Thanks
Al

[frozen]

I forgot to mention that I was offered the option to upgrade to 2.8(ver96) and I have not upgraded as of yet.

[dnanian]

Does it show up in Disk Utility when run from the copy? Sounds like the drive may have failed...