How to clone a damaged HD?
Your best bet when hardware is failing is Data Rescue and not any tool that tries to rebuild/minimize/rewrite errors.

You will need a second drive of equal capacity and time to let the software take several passes at reading the data to get the best results. But, unless you have a budget of $300 to $3000 and want to send the drive off for professional help - you can't do better than Data Rescue in my estimation and experience.

Data Rescue has professional support and many bells and settings to tell it to really try to access the data by hook or crook, so a call into them would be my next step as you indicated it's not working with your settings.