Finder crashing constantly - cannot start up from install disk

Looks like I have a conflict between spotlight and the finder. The spotlight icon is missing from the menu bar and whenever I try to launch an application etc. from the finder it freezes & I get the spinning beach ball. The screen refreshes but the dock remains
I have done all the usual tasks like repairing permissions,repair the disk, rebuilding the memory with DiskWarrior, Mainmenu tasks , Applejack, restarting, Tech Tool Pro etc.
I have tried using the install dvd but I get to the restart page and it reverts back to where I was before and does not read from the DVD so I can't get to the installer. Have tried the disk in the internal and external optical drives without success.
I also can't seem to restore the system with Time Machine because it says to use the install disk which
my computer will not read from the disk.
Short of doing a complete erase, is there any else I can do.
The console is recording both Spotlight crashes and the Finder crashes every few seconds.
Anyone with some suggestions, please.
Alan

Because you have known good backups, I'd try to get the disks working and Restore from Backup via Installer as you were trying. Reseting the PRAM and NVRAM can help with startup issues (power down, wait 10 seconds, turn the computer back on and hold down commandoption+pr until you've finished hearing the second startup chime).
Let the computer startup. Power down and try to boot to the install disk.
If you still cannot boot to your install disk, try resetting your SMC by turning the computer off, disconnecting it from AC, removing its battery, pressing and holding the power button for 5 - 7 seconds, then letting go. Reconnect battery and AC, try booting to the disk again.
If both these steps fail, verify the disk with another computer - can another computer boot to it? If not, call AppleCare for replacement disks. If so, book a Genius Bar appointment, there is a hardware issue.
Michael

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