Panic Kernal: You need to restart your computer, Help please...

Question

Yesterday I installed an update on my MacBook and everything went haywire. I installed the Apple updates
that were recommended for my computer when it did it's weekly update
check. After the install I quit all open applications and did a
restart per the on screen prompt. Finder closed and the computer just
sat for over a half hour and never would finish shutting down. No key
strokes or commands would do anything. As a last ditch effort I held
the power key down until it shut down. I waited a minute then powered
back up. The gray screen with the apple logo comes up then the spinning wheel. Then a
panic kernal saying the computer needs to be restarted. I tried ten
times then I reset the PRAM then I did two hardware checks. First the
short check then the long one. Both tests showed all hardware to be
fine.Then I called Apple. They told me to reset the PRAM, told me to
do a hardware check then told me to boot in safe mode. Then told me to
try an archive reinstall by inserting disc one, power on, then hold
the C key after the startup chime sounds. One of two things happen
when this is done, it either goes to a blank blue screen or the "You
need to restart the computer" message comes up. If I power on with the
disc in and hold the option key the hard drive and the disc shows on
the screen. If I click on the hard drive the "restart message comes up. If I
click on the disc the blank blue screen usually comes up but twice the
"restart" message came up. I have tried all of the start-up key strokes, Once I got into safe mode but I can't get into it anymore, it now gives the you need to restart message. I can get into Verbose and Single user mode but I don't know of anything to try once I'm in either of those modes.I tried to boot system from single user mode by typing in the command sh /etc/rc but a long list of code just comes up and says something about the panic kernal which I believe is telling me that the same problem
I have trying a normal boot is keeping it from booting in single user mode also. I can do a hardware test(I've done this 3 times and everything shows to be OK). The main problem I have now is it won't boot normally and it won't boot from the install disc so I am truly stuck. I am at a loss as to what I should try next
since I can't even reinstall the software. Any help will be greatly
appreciated especially since my free phone help ended 2 days ago and
today was the first time I ever needed it!!
thanks, Jason

Answer 1

Thanks for replying, I have no peripherals attached, I am booting from the MacBook Tiger DVD one that came with the machine. I get the panic kernal with or without the disc installed. All hardware checks out fine in the three hardware checks I've done. I am almost positive the problem is stemming from the Apple updates performed since this is exactly when my problems began(trying to restart after the Apple updates). I just can't get the machine to boot from the disc no matter what I try so I can reinstall the operating system. I even tried using an external DVD-ROM once to see if it would boot from it but it did the exact same thing as when I try booting from the internal drive. Yes my files are backed up to an external hard drive. I've got no problem doing a Nuke and Repave if I must but since it won't boot from the disc I don't know how I can even do this. I know it is under warranty but since the hard ware checks OK it looks like there would be a way to get it running again without sending it in for repairs. However I am starting to think that's what I'm gonna have to do. I'm just glad I still have an old clamshell iBook to work with so I can access the internet to seek help. Thanks for your input, can you think of anything else I could try?