Installing mountain lion failed

I have made a bootable USB disk of mountain lion and I tried to install mountain lion off of it. However, it has failed to install.
I went to boot it from the USB and it started installing as it should but then when it came to the second screen where it says it will take 30minutes it froze and then said that there was an error and I need to reinstall mountain lion. So I went to restart my computer and now it comes up with a error is saying "there was a problem installing "Mac OS X" try reinstalling". When I try reinstalling without my USB plugged in it comes up with the install OS x window but it does not detect my internal hard drive disk.
I do not no what to do? I tried to go utilities>restore system from backup and I plugged in my external hard drive but now it does not recognize my hard drive disk on my MacBook so I couldn't restore. Please help me! Need my MacBook to finish my assignments
I'm using a late 2008 aluminum MacBook (according to apple it's is compatible)
Upgrading from lion
Please help me ASAP if possible

Since you have Lion running after this restore, do not instal ML from this USB stick you made (it is probably not corrupt, but anyway don't use it) but download ML again.
The installer you will find then in the Applications Folder.
Before you install it, make a new USB stick installer with "Lion Diskmaker 2.0.1" : this works for Lion too. Read the acompanying readme.
When you have this USB stick made, INSTALL BY USING THE INSTALLER IN THE APPLICATIONS FOLDER:
this will eliminate the large file form your Aplications folder and will just create a ML installation with all your data etcetera in place.
Note: beware that some Apps may not be ML compatible, you can check on the www.roaringapps.com sites.

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