MBP (Early 2008) won't completely start up & has lines going through screen

I'm trying to help out a friend. He has a Macbook Pro (Model Number: A1261, Early 2008). When I go to turn it on it sits at the grey loading screen with the apple logo and loading bar but they have a line through them. It either sits at that screen for a very long time, restarts itself, will go to a black screen and stay running or goes to a few random screens. I made a video of what it does and put on youtube so you guys can actually see what is going on.

YouTube - MacBook Pro Problem.mov

I've tried just about all the boot commands I could find online and nothing worked. The OS X install disc is in the computer and won't eject. I tried restarting it holding the mouse button and it makes the sounds but doesn't actually eject it. If anyone could give me some direction of what the problem might be or some things I could try it would be greatly appreciated. Thanks for the help.

Does it have the infamous 8600 graphics card?

I'm not to sure I wasn't able to ever see the computer running and I don't think he ever knew. I did see that this model could have problems if it did have that graphics card. I just wasn't sure what the problems would be.

https://roscomps3.securesites.net/www.nvidiasettlement.com/checkmodels.php

Go there and fill in the serial number.
nVidia mass produced a bunch of faulty GPU's and some MBPs from 07-08 are affected. They will repair it for free if this is the case.

Yes it does have the graphics card and it does seems it has the symptoms described. Thanks for the help!