Hello,
I have had similar problems myself, the box would not start although the hard drive appeared to be going. I would recommend opening the box and replacing the hard drive with a new one, any standard IDE drive, I replaced my 40GB with a 80GB as thats all I had and it booted up and worked great! so replace the HDD, turn it on and wait abut a minute, then press the standby button. it should boot fine! Remember opening the box voids the sky warranty, and if its under warranty then you void it by opening it. IF ITS UNDER WARRENTY CALL SKY AND GET A FREE REPLACEMENT!
Good luck.
Jonathan, June 2007