macbook wont boot into osx

Hey everyone,

Im having a small issue. I dont know if its hardware or software. I just got a macbook white (previous generation and my very first mac) from best buy. It started up fine the fist time. I made my account and everything it worked fine. I was on it for about 2 minutes, then i put in the 10.6 upgrade disk and the "you need to restart" error came up. Ever since then, it wont book into osx. Sometimes it will show the apple sign then freeze and sometimes it will be just the gray screen. Iv done everything:
wont boot into safe mode
i tired the PRAM reset, nothing.
the restart error comes up when i try to boot from osx cd (10.5)
started it up with one piece of ram to see if that was the cause, nothin.
got into the prompt and nothing.

Is this mac just done for?

With the OS X disk in and powering on and then holding the Option Key what happens?

it will boot to where it shows the hard disk icon asks what hard drive to install in on. i click on the only icon, starts to boot then the restart error happens. Its still at the gray screen

Hmm - something a bit odd. Have a look here to see if anything points in the right direction.

Terminal suggestions anybody?

tired everything in that forum and still got nothing to work. Also whenever i put a cd in the drive, it sounds like its tiring to eat it.

If u have only just got it then it will be within the 12 months warranty so i would be heading of to or contacting Apple to get them to sort it.