Installing OS from external drive

I attempted to wipe my HD and re-install OS. I loaded the disk, chose the proper install option, and the computer erased my HD--and then the CD/DVD drive failed. Now it won't read the disk. Spins it around for a minute and then just ejects it. So I am stuck with a computer with no OS. Can I install OS from an external drive?

You should be able to boot from an external usb drive - assuming its an intel mac. You will need to clone your install disk using a program like superduper, then a start-up with the alt key pressed should see the external.

But first make sure the install disc hasn't got any dirt on it

How about installing from another computer connected via firewire? I have and older ibook that I could connect. Any idea what I should do after I start up the computer and hit the "T" key?

You could try that but unless you have a retail copy of tiger, rather than the grey restore disks specific to the Macbook, the installer will not work running on the older iBook

If you have a retail OS disk then you need to connect them up and restart the MacBook with the T key and use iBook to try and insatll OS X