New HD installed, DVD drive has trouble ejecting/insert. Can't install Snow L. DVD?

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I bought an Macbook 13.3" in. 2GHz MA255LL/A almost a year ago, this is a used 2006 model. When I bought it, it had an 80gb hard drive so I decided to upgrade to a 320gb. I purchased from Amazon.com. About a month ago I kept getting the earth symbols on startup and could not get it to boot any way at all. Brought it to the Genius Bar and they tried everything they could to fix it and reinstall OS X, they couldn't and told me that the hard drive was faulty. I got a free replacement from Amazon the other day so I partition the new HD using my iMac and an external casing so I could install OS X. I tried following this YouTube video: How to Make a Bootable External Hard Drive, SD, or USB - YouTube but I realized that I couldn't install OS X without already having a HD installed on my Macbook. I tried what I could and it didn't work. So I realized that I had my Snow Leopard install DVD, I partitioned my new HD as "Macintosh HD," then I tried putting my install disk in and I pretty much had to jam it in the DVD drive, it still wouldn't take it. I read a couple things about how you could try to pry the optical drive open a little bit to eject/insert and it actually worked and I got it in. I finally got to the install screen and chose what HD to install on which was the right one, I can hear the disk spinning and everything. When it's installing and says "Time remaining," it wouldn't move past 30 minutes and that's when I started hearing the DVD stop spinning and it would make a clicking noise. Tried this multiple times, I had trouble getting the DVD out, multiple times. Can someone please give me advice or tell me what is wrong with my optical drive/Macbook? I've never had a problem with it since I purchased it. Is it a firmware problem? How could I do anything if I can't even install OS X to try and get firmware? Someone please help me.

Also I do not know what kind of optical drive/DVD-R drive it is, I cannot access anything on the computer without installing OS X. It is the original that came with this model though. It's a Macbook 1,1 13.3" in. 2GHz, 1GB RAM, DVD-R drive (all original) MA255LL/A (2006)

I'm trying to sell this Macbook ever since this whole faulty drive popped up, I needed new Macbook Pro ASAO for school so now I'm really trying to sell this Macbook. How could I repair it? Wouldn't I need to buy a new DVD drive? I just started trying partitioning my external HD so I could put the install disk on it but I keep getting this error message, it was the same with my newly encased HD that I'm trying to format. Here are pictures of what's happening.

First:
24bnexx.png


Second:
72ue5y.png


Last thing I can do, won't let me make it bootable for some reason, on both HD's:
wbf7ug.png


Any input/response/help would be grateful.
 

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