MacBook Pro wont boot

So this past weekend my 2008 MacBook Pro decided not to boot correctly. I upgraded to lion a few weeks ago and started to get kernel panics often and most of the time the screen would go grey and request me to restart it. I went to use it on Saturday night and it kept restarting over and over. The bong would happen and the apple logo would come up but shortly after it would restart again.

I went online (iPad) and found all of the key commands for trouble shooting and started to notice nothing was working. I cannot get the computer to go into safe mode...it will show the status bar and half way through it will restart again. I am unable to load the disk that came with computer so I can't run disk utility. I have tried all of the key commands and nothing.

I have removed the ram and the computer beeps when turned on so I think the ram is ok. I can press option button on start and see my Macintosh HD and windows partition and the recovery HD. I can put my snow leopard disk in and it will even show up. When I click on any of these options it will just restart or show the grey screen and I have to shut it down myself.

I am able to get to the root menu but have no clue how to use it. I typed in fsck -fy and it runs though and comes out ok and says it was modified.

What is going on here?

G'day and welcome to the forums.

How much free space on the hard drive? Second option sounds like a failed hard drive. When boot from SL disc can you get into Utilities in the Menu Bar and run Repair Disk?

It's a 250 gb hard drive and about 100 gbs free

I am unable to load anything from the system disk so I have no options for any of the utilities.