I am having the same problem but, I have a satellite and my laptop is only like 8 months old. I hope someone responds to this one. Good luck, But I think we should still be under man. warranty it is one year I believe I am going to contact the store where I bought my laptop tomorrow.
Your systems didn't come with recovery disks, they came with a recovery partition from which you create your own recovery disks. It would appear that you failed to do that and now that the hard drive has failed it is too late to do so. At this point we don't know if the hard drive has completely failed or just lost it's boot configuration. You can check that by going into the bios or setup when you first start the computer by hitting the F2 key when the Toshiba splash screen appears to see if it lists a hard drive. If not, you know that it has completely failed and will need to be replaced. COntact Toshiba Support by phone to arrange to have it repaired. When you get it back make your Recovery Disks as outlined in the User's Guide.
If the hard drive shows up in the bios you need to verify that the boot order in the bios is set to boot from the hard drive first rather than the Network (which is the PXE error message you are getting). If resetting the boot order doesn't help then you'll need to repair the boot configuration. That's beyond my area of expertice, but there are several users here that can guide you through that. Hopefully one of them will be along shortly to walk you through it.
If you don't post your COMPLETE model number it's very difficult to assist you. Please try to post in complete sentences with punctuation, capitals, and correct spelling. Toshiba does NOT provide any direct support in these forums. All support is User to User in their spare time.