Mac isnt booting up after I used time machine

So I have an older iMac (5yrs old or so) with leopard.

Anyways I restarted my comp cause it was freezing up and then I kept getting the white screem and it would never boot. So I found out how to add the install disk and boot it. Then I used my time machine to reinstall. I went to bed and then this morning my computer was on a grey screen and it says "You need to restart your computer. Hold down the Power button for several seconds or press the Restart button"

So I did. and it keeps coming up. Now what do I do?

Let's try this first:

Reboot the machine and hold down the shift key as soon as you hear the chime. If it works, the iMac should boot into safe boot mode. If that doesn't work, break out your install DVD again and boot the machine with it.

But this time instead of reinstalling OS X, run Disk Utility from the top menu, Utilities. Highlight your hard drive on the left side, and run a verify and repair from the First Aid tab on the right side. Let us know the result.

Well I took it to the local Apple store and...my hard drive is fried. There were som 65xxx errors on it and I need a new hard drive... 180$ for a new 500gb hd and 40$ to install... Kinda bummed.