10.6 will not install on a late model MacBook Pro

What a surprise ... FedEx just dropped off Snow Leopard and I popped the DVD into a less than a month old 2.8Ghz MacBook Pro running 10.5.8 with all other Apple software updated. I clicked on the Install Mac OSX icon, continue, agree to license and up comes a pic of my hard disk icon with a yellow triangle and exclamation point. When I select that disk (it's the only choice) to install I am told, "Mac OSX cannot be installed on "HD Name", because this disk cannot be used to start up your computer."
There are no other disks or peripherals of any kind connected.
The machine is running on the disk that I'm told "cannot be used to start up"
There are three user accounts. Only one is logged into and the account has admin
OK ... so I restart from the SL install DVD and select install ... same sequence, same result.
Ideas?
Here's the log:
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: @(#)PROGRAM:Install PROJECT:Install-388
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: @(#)PROGRAM:Install Mac OS X PROJECT:InstallAssistant-48
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Hardware: MacBookPro5,3 @ 2.80 GHz (x 2), 4096 MB RAM
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Running OS Build: Mac OS X 10.5.8 (9L31a)
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: PATH=/usr/bin:/bin:/usr/sbin:/sbin
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: GOOGLE_GILD_RUNTIME_FRAMEWORK_ABSOLUTE_PATH=/Library/Google/Frameworks/Gild.framework
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: TMPDIR=/var/folders/eC/eCq6ZczwH-mk6GFx-b9hUE+TI/-Tmp-/
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: SHELL=/bin/bash
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: HOME=/Users/P4
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: USER=P4
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: LOGNAME=P4
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: DISPLAY=/tmp/launch-wDlc9D/:0
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: SSHAUTHSOCK=/tmp/launch-BFthHF/Listeners
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: ApplePubSub_SocketRender=/tmp/launch-fi1aHB/Render
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: _CF_USER_TEXTENCODING=0x1F5:0:0
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: SECURITYSESSIONID=dae860
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: COMMAND_MODE=unix2003
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: InstallMac_OSXVersionString=@(#)PROGRAM:Install Mac OS X PROJECT:InstallAssistant-48
Aug 28 14:41:10 prime-ivs-macbook-pro Install Mac OS X[332]: Using install media product at /Volumes/Mac OS X Install DVD/System/Installation/Packages
Aug 28 14:41:10 prime-ivs-macbook-pro Install Mac OS X[332]: Will bless Mac OS X Install DVD (disk1s3)
Aug 28 14:41:14 prime-ivs-macbook-pro Install Mac OS X[332]: Disk Prime IV: not bootable

I've spent the day dealing with AppleCare and the local Apple store on this issue. I've tried installing on 5 MacPros, 2 17" MBPs and one Mac Mini. The Mac Mini worked and all seven others got the exact same error you got.
I got the error while trying to install while logged in and by trying to install with booting off the SL disk. AppleCare thought the DVDs were bad and they seem to be using this as the answer to a number of problems. I went back to the Apple store and swapped all my DVDs and they also tested them there. Both the original set and the new set worked there but once again didn't work on mine.
AppleCare and the techs at the store are stumped at this point. I was going to be testing further but PGP has released a notice that if you're running PGP you should not install till PGP 10.0 comes out, which means that now I can't test any further until the new PGP release comes out.
Regardless, there does appear to be a serious issue here. Hopefully it will be fixed before PGP gets the next release out.
The seven Macs that failed were all Intel Macs and covered a variety of generations over the past few years. All were fully patched up to 10.5.8 and were running without issue.

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