10.6.2 killed my iMac!

Hello all,
I recently upgraded to SL with no problems and moved up to 10.6.1, again with no problems
However, when I recently downloaded 10.6.2, I had problems. I tried to install a couple of times but that failed so I restarted. Tried installing again, failed. Eventually, I tried again and it seemed to install but wanted to re-boot. It never managed to boot into SL - I get as far as the logo and spinning gear.
After looking on this forum, I tried going into safe mode but I didn't know what to o once I was in. I also booted from DVD to run Disk utility. This threw up some errors, I tried to repair them using Disk Util and it came back with a message saying that files are corrupted and it was unrepairable.
It suggests reformatting and reintalling but I wanted to find out if there is another option I can try before biting the bullet?
Thanks for any Help

Thanks for suggestions so far, making my way through them as and when I can.
Tried resetting PRAM and NVRAM to no avail.
Tried installing Snow Leopard from scratch but it won't even see the volume.
Allan, I ran Disk Utility from the Snow Leopard DVD and this is the exact message it gave (asterisks denote red highlighted text):
===============================
Verifying volume "Macintosh HD"
Checking Journaled HFS Plus volume
Checking extents overflow file
checking catalog file
**Invalid sibling link**
**The volume Macintosh HD was found corrupt and needs to be repaired
**Error: This disk needs to be repaired. Click Repair Disk.**
Verify and Repair volume "Macintosh HD"
Checking Journaled HFS Plus volume.
Checking extents overflow file
checking catalog file
**Invalid sibling link**
Rebuilding catalog B-tree.
**The volume Macintosh HD could not be repaired**
Volume repair complete.
Updating boot support partitions for the volume as required.
**Error: Disk Utility can't repair this disk...disk, and restore your backed-up files.**
=======================================
I should say at this point that I did not have time machine enabled and do not have any backup of the system drive to restore. I'm not afraid of reformatting and starting again because all my data is safely kept on my NAS with RAID mirroring. Essentially, the HDD contains the OS and installed software.
If I can avoid starting from scratch, that would be preferable!
Thanks again for everybody's help and suggestions.

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    I had this imac 27" two years back(leopard 10.5.8) and no problem was encountered so far! (thanks 4that),i always made an update as far to snow leopard 10.6.8. Unfortunately when i did some application /downloading,the system was off and when i turn it On the logo of an apple only came.So what i did is to start all over again,now i am two years old back with Leo-10.5.8,My problem is i cannot install my snow leopard,it reads that i have to clean tha disc which i did and thru utility disc.Any help please and i really appreciate to every1 helping me to solve the problem.I will keep in touch.
    Many thanks! - Angel

    BTW,I purchased the SL by retail and originally installed for the first time in my IMAC 27" ,unfortunately during the upgrading of the system,suddenly it was totally gray.then off as it killed my imac.i switch it On but only the apple logo came and waiting for so long.I tried to start from the very beginning,installed the DVD installation that was originally came from imac..it works and i have now the latest version of Leopard 10.5.6...then .8 thru updates. My problem is i cannot re-install my SNOW LEOPARD that i purchased from retail store..proceeded to install in my imac but everytime it ends with 'FAILED-pls clean the disc" i did the cleaning but still the same,:installed failed!-The installer could not copy the necessary support file",i tried booting from the disc holding C down but no luck at all. Anybody can help me please. Many thanks ..

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