OnTrack can repair the bad drive:
http://www.krollontrack.com/data-recovery/
It may cost $1,000, but it's worth it -- I've done it once myself.
I offsite backup as much as I can, including ISOs of DVDs and the master source files. Hopefullly you had some degree of backup plan in place. Having grown up in tornado alley, I've always been pretty good about trying to copy as much as I can for another location. In the old days, that meant photocopies of documents. Now it's scans and digital dupes.
Any video tapes you have can be recovered, too. Again, about $100/tape, but if there's anything important, it's not a total loss. Contact
VideoInterchange or SpecBros for that one.
I wish I'd have gotten you all that X-MEN stuff sooner. I know we had been discussing a number of new sets. (Not that a DVD hobby is a priority right now, I'm sure.) After time has passed, and you've normalized life again, and want/need the video/artwork hobby, we'll be here to help you regain what we can.
Remember that the worst thing for a CD/DVD is sunlight. A DVD will probably be in better condition that a CD, too, because of how they are made (with DVD having the second protective upper polycarbonate layer, while the CD is unprotected and easy to damage).
On the samaritan side, I'll do what I can to help you out with some of the losses.
On the selfish side, I hope you didn't lose any of the really cool videos, menus, artwork, etc, that was in progress.
Take care, and report in once in a while.