I had this same display with a Toshiba RD-85DTSB DVD Recorder some months ago.
E7061 appears to be Complete Hard Drive failure.
I was able to repair my machine by installing a new (unformatted) 3.5" IDE Ultra ATA Hard drive of the same capacity as original, though from a different manufacturer. Check the installed drive in your machinie first before buying a drive. Set the jumper pins to match the settings of the original drive, usually Cable Select, reconnect to TV and switch on. It should load to normal welcome screen, at this point format the hard drive using set up; usually found on More Settings tab.
Hope it works for you too.
gentian5
October 2008