I have a hard drive 500GB seagate that failed too. It was on an external enclosure and knocked it over while it was running. Now it wont spin and makes a beeping noise and I can't access 400GB worth of data. I'm assuming it's just the motor within hard drive itself is not functioning and the parts can easily be swapped out from a similar hard drive model/firmware. I heard of Addax Computer on Bridgeport and can try and fix it for around $150, way cheaper than other data recovery specialist. They claim that if they can't recover it they'll only charge you a minimal fee for time and labor. I still have to drop mine off and give it a try but do call them and get a quote.
http://www.addaxcomputer.com/