First of all, thanks for the input...Bought Mac from a friend of a friend, therefore no gray disk.
Black MacBook. On the old hard drive I had OSX Snow Leopard installed. I had a Mac & More store do it was crazy expensive and would like to try to do this myself. I am fairly proficient with Windows and do this stuff for my desktops and other laptop...
Thanks for all of the info...the cd drive kept ejecting the installation cd...so I took it to the Mac & More store...hopefully they will be able to solve the issue.