Certainly sounds like the disk has died. Sounds like a head on platter, which can often be fixed by giving the unit a sharp tap while its trying to start up - but I would recommend getting it replaced under warranty.

You'll probably have to call the US support centre since you bought it there, but you could give the UK centre a try, or even Amazon UK. The Rio support numbers are on the web site.

http://www.digitalnetworksna.com/support/rio/contacts.asp?locSup=USA

Rob