Hi
I found this thread while searching for information about Toshiba DVDR E7061 display. I have had the same problem with a Toshiba RD85-DTSB which I have now solved.
E7061 refers to Complete Hard Drive Failure. I tested my old hard drive on a PC Drive Check it would not even detect the drive.
I asked at the local Toshiba dealers, they were more interested in selling a new unit, than offering any advice on repairs. With this in mind, as the unit was out of guarantee, I opened the case and discovered a standard 3.5" IDE Ultra ATA hard drive installed. I had a spare drive previously formatted for PC files installing this displayed E7036.
I left the problem for some months until I needed to install a more storage space on my PC.
With a new unformatted hard drive, I decided to have another try at the DVDR unit. After reconnecting the DVDR with the new unformatted drive installed, it started and ran to the normal start screen, displaying cannot configure hard drive in a pop up. The drive was then formatted in 'Setup' this can also be done from the options screen in More Settings usually under security settings 'Key symbol'. This set up the drive with its file folders and the unit is now working normally.
There seems to be no point in trying to upgrade with a bigger capacity drive as the unit does not have drive detection and will only set to drive to its production capacity.
This requires only a new (unformatted) 3.5" IDE Ultra ATA Desk Top hard drive (Information for RD85-DTSB; check installed drive of your unit) of same capacity as original and a screwdriver to open the case. Check the jumper settings of the original drive and match them on the replacement, some drive manufacturers use different pin settings, if not on the drive case then check on line for jumper settings for your replacement drive.
Paul Bridgett, September 2008