My Haier mini fridge (model # HSW02C) is freezing everything in it's contents no matter what number setting (1-7) it's on. Is 1 supposed to be the coldest setting, or is 7? What should I do?

There should be a thermostat, perhaps it needs adjusting or perhaps it is faulty and should be replaced.

maybe the fridge is set on a colder setting and if that's not it then stick it on the lower shelves and that might help from not freezing because are fridge is the same way when it is stuck by the coolant fan

Well, mine is set to 1 and it freeze everything in the fridge! I'm going to try the opposite

My mini-fridge did a similar thing, until I realized that managed to put on the wrong temperature knob. It was technically backwards. They may have done this to you. I mean, it is a longshot, but try putting it on the highest setting to see if that helps. If it does not, you're most likely dealing with a faulty knob that's not actually changing the settings on the thermostat.

I would say that the motor is humming because it is not turning and the click is when the overload control switches the power off. It may be a start run capacitor blown out but it may be a seized compressor motor. have a fridge mechanic check it out.

Yes your thermostat is shorted. It's just not shutting the unit off ever. A thermostat is something you can touch as a user, so no it's not that hard to get to for replacement. Also have the unit unplugged while learning how to repair your appliance.

on its side? considering the chemicals inside the freezing elements, it needs to sit upright for 24 hours before you plug it in, or you may break it. so if thats what you mean, why is it sideways?

This is a drawback of most mini-fridges. Start by defrosting everything. Then fill ice cube trays with water and keep lowering the setting until the water freezes. Just go a little lower, no more. Fridge should not freeze food. If the fridge stays closed all the time food will freeze. Also if the freezer element gets ice buildup it must be defrosted. Not automatic like home fridge. Most kids today weren't born when the last fridges that had to be defrosted were in service.

Need to replace the termostat.