That will work just fine.
Also the retail version of Snow Leopard doesn't come with the iLife Suite, you need to purchase that separate.
Also when i comes time to reinstall; make sure you delete your old partition using disk utility and then install snow leopard because if the Macbook has leopard(osx 10.5) on there now; when you pop in the snow leapord(10.6) disk it will assume you want to do an upgrade instead of a fresh install and keep all of your old settings and transfer them over to the fresh install.
So long story short:
To install Snow Leopard; put in your snow leopard disk, open disk utility and reformat the HD and then proceed to install snow leopard.
Here is a video showing you how to do a fresh install of Snow Leopard:
YouTube - Guide: How To Do A Clean Fresh Full Install Of Apple Snow Leopard OS X 10.6