Lion OSX major network issue with MacBook but cannot restore from Snow Leopard disk - help!

Question

I have a network with an airport extreme with two expresses and a time capsule extending the network.  The network has a Mac, apple TV and two iphones which all connect absolutely fine.  The macbook did too, until I upgraded to 7.6.1 on the airports.  I took the airports back to 7.6 but the Mac simply isn't speaking properly to my extreme.  It drops, speeds up, slows down and works differently in different part of the house.
Been to Genius who said, macbook is fine, try either a completely fresh install on the mac, or reset the network.  The reset of the network hasn't worked, so I wanted to reinstall snow leopard then lion on my mac.  Put the disk in, and it came up with the error can't install the Mac OSX from the install Mac OSX disc.  I have therefore tried the original leopard disks, which simply restart, chime and restart (continuously).
I need some help as this is my work computer and I don't seem to be able to get any help from anyone.
So I need to know the following:
1) Has anyone got any other solutions for the extreme problem (have tried dragging out the preferences but that didn't work either);
2) How do you reinstall an OS from the disk - as this in particular is a nightmare.
3) Anyone able to suggest a work round??
Would be very grateful for assistance.
Thanks

Answer 1

Hello ddownn and welcome to Apple Support Communities,
Firstly it will help us diagnose your problem to know the exact model, size, year built, RAM installed and OS you're running. That would include the OS and particulars about the Mac Pro.
"this system doesn't beep three times."
The normal diagnosis for that is RAM problems.
"I am able to complete the installation by using the DVD in my Mac Pro in Target Disk Mode with a FireWire cable"
But that shouldn't work because the install (build) would be particular to the Mac Pro.
"I recently installed a new HDD and formatted it from a Mac Pro via Target Disk Mode."
Partitioned to GUID?
"disk spins up and stops about three times, then ejects and a folder icon with a question mark appears"
These DVD drives in these old laptops can often go bad. Try this:
http://computers.tutsplus.com/tutorials/how-to-create-a-bootable-usb-drive-with- os-x-snow-leopard--cms-21491