I don't think I'm going to be much help at all, but I'm going to relate a similar experience.
I'm using a PIII 700mhz VAIO (FX-120) that came w/ WinME installed on it. There were times when I'd power the unit on and I would get the
Operating System not found error. Drove me insane as I'd bought it used and the guy that I bought it from (who'd promised to send me the receipt so I could use the warranty if need be) quit responding to my queries.
I traced it down to the hard drive connector. If I removed the panel above the keyboard and fiddled w/ the connector, that would often get me going. It was a pain, though.
Earlier this year, I got an "Imminent HD failure" warning. Not even sure where it came from. But I got it. I wasn't going to chance anything, so I got me a new 40gig IBM to replace the older 20mb Hitachi. I haven't had a single problem since then. Works
beautifully. I've not ONCE had that "OS not found" error since replacing the HD.
I mention this because you're running the same generation VAIO that I have, so I figure it wouldn't hurt to pass along.
I'd suggest opening up the little cover above the keyboard (where the mail/sleep, etc. keys are) and snugging up the harddrive to the connector. That might get you going. There's only one screw holding the cover in place (on the left). The HD is a bit more grumpy to fiddle with, but it's definitely do-able.
If you plan on keeping the machine, you might want to try putting in another HD to see how that works. It's a 5~10 minute job. Piece of cake.
Oh, btw- if you want, I'll trade ya my VAIO for your 8890
