HDD Details: WD3200BEVT (320 GB), 2.5yrs old, always used as internal drive.

Symptoms:
HDD crashed - went undiscoverable in POST after windows crash.
Strange read noise (occurs 5 times for abt 1 sec each) when plugged in to USB
Now when connected using an external enclosure it shows up as 2 TB from R-Studio Demo/Recover My Files v4 and from Vista Disk Management. (And the seemed to take forever to scan. An RMF v4 scan s till goin for 31 hrs - 14%.)

The reasons im pumped to recover data DYI -
a) The fact that the hdd is *discoverable* from recovery softwares
b) The HDD has got our baby photos - and im not sure if i can afford $1000s to fix the hdd.

Question:
Can someone tell me if i can recover my data DYI? Can the HDD be recovered from software level? if yes, what tools can anyone suggest? i'm happy to buy them if i need to.

NOTE:
The drive was covered in Dell warranty and they have happily replaced the drie, however i have to return the broken drive in 10 days.

The reasons you are pumped to a DIY waste of time and possibly loss of your photos -instead- are :
a) the drive has internal failure - most probably head failure and/or firmware fault hence the 2TB id.
b) likely, the sw you are using in this state won't work or will read bullshit
c) in a while, the drive will stop working definitively and stop responding at all.
d) if there is a certain problem you are damaging beyond recovery the drive (media damage) but as the drive status is undetermined this may or not happen.

Last hope is that drive has logical problems but it would have properly diagnosed with dedicated gear. The symptoms you have posted lead to HW FAILURE.

I would have kept the drive , forget the warranty, buy a 50 bucks replacement and wait sparing some money until could afford a professional service.