I have a mac book pro I bought in 2006 and when I start it up it stays on a blue screen and makes these weird kinda grinding noises and then after awhile it goes to a flashing folder with a ? in it.
The blue screen shows because it can't fully load the OS. The flashing ? mark folder confirms this - it means it can't find an OS. Since you are hearing grinding noises, then unfortunately the trio of issues you are having are due to a failing HD. It will need to be replaced.
It really sounds to me like the HD is failing/failed. Not really much more you can do in the state it is in.
Do you happen to own a copy of Micromat Techtool Pro or Prosoft Drive Genius? If so, you can startup from one of those discs and run a surface scan. That would probably fail pretty quickly and confirm the HD has failed.
If you don't have any third-party diagnostics, take it in and get a quote for replacement.
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