macbook pro factory reset problem

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Hi all, new to this site, but was wondering if anyone could help me out. I just got a new 17MBP and I'm trying to reset my older MBP to factory settings so i can't give it to my sister. I have the original mac os disk that came with MB. I inserted the disk and restarted the MB. When i restarts the images come out all distorted/scrambled. Is there any other way to reset it back to factory settings?
 
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Your Mac's Specs
Black MacBook 2.2GHz C2D, 4GB Ram - iMac G4 700MHz, 512MB Ram
Are you holding down the "C" key when you reboot to "Boot from Disk"?
 
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No

Am i supposed to be holding down the "C" key when i reboot? Ok i tried it, and still the same result. It booted to the install screen, but once again the install screen is scrambled. The regular screen is normal. but once i restart to begin the installation the screen becomes scrambled and i cannot read and see what i am doing.
 
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Find install disk that matches the current MacOS

I ran into this same issue when trying to boot from the original install disk that came with my MacBook Pro 15" non-unibody. After the gray apple screen I got scrambled unreadable screen, like the screen was sliced diagonally and each segment shifted.

The OS is upgraded to Snow Leopard, using the Snow Leopard install disk as the boot DVD it was fine, and I was able to do what I needed (run Disk Utility to clone the drive).

I know this might not help you to restore to factory settings. My guess is with the major system updates, a firmware tweak may have made it problematic to now use the original install disk.

Some things I thought to try but didn't, that might work?:
Set screen resolution to something low then boot from DVD.
Reset PRAM right before booting from DVD.
 

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