Oh man, I just found this post and had to say something, Sorry for bumping this post, was there any success on recovery of the pics and data...
Anyway, my two cense, if its worth anything.
From where I am standing, or sitting, I think you have done a brilliant job in retreating the data from that chip that was accidentally trashed when you took it off the PCB job, so hopefully the main task might be completed, but I do see a huge problem that has caught you dead cold, and that was the ring, or scratch on the disk surface, which I am certain is causing the problem
More than likely, that area, that is scratched contains the drives onboard data thats loaded behind the scenes, so when the drive tries to load that data, it cant, then goes into a loop.
The only thing I can think of is, you need some software or a device that will forcefully move the heads in a pattern to download all the data RAW from the patters onto a good disk and then shift through all the rubbish until you got the files you need. Your FAT partition or whatever would be screwed as well as your boot sector, but you need to find a way to read all the rest of the data skipping parts of the disk that have been damaged.
But I fear that the main damage had been done, when you cracked the casing on the first fun, the heads were exposed to the elements, think of a naked woodman walking into a stand storm and coming out all minced up. with a drive with so much capacity, the heads would have been smaller then two years ago. The more space on the drive, the smaller the heads..
Then each time you turn on the drive, the partials of dust and air would be stirred up and cause damage to the new heads you transplanted.
But in the end, hards drives are interesting things and playing around with them can get one hooked, like I have been many times in the past, but the data is always backed up.
Anyway, let us know how it turned out... You might have tossed the thing by now, but it was a worthy read, one that should be published.

Shane