When trying to format my internal hard drive, it's greyed out in Disk utility?

I'm trying ot format my computer and wipe everything off before giving it away, but Disk Utility has everything greyed out and won't let me choose my hard drive. I have the original CD and everything that came with the computer. How do I fix this fast?

Clean Install of Snow Leopard
Be sure to make a backup first because the following procedure will erase
the drive and everything on it.
     1. Boot the computer using the Snow Leopard Installer Disc or the Disc 1 that came
         with your computer.  Insert the disc into the optical drive and restart the computer.
         After the chime press and hold down the  "C" key.  Release the key when you see
         a small spinning gear appear below the dark gray Apple logo.
     2. After the installer loads select your language and click on the Continue
         button. When the menu bar appears select Disk Utility from the Utilities menu.
         After DU loads select the hard drive entry from the left side list (mfgr.'s ID and drive
         size.)  Click on the Partition tab in the DU main window.  Set the number of
         partitions to one (1) from the Partitions drop down menu, click on Options button
         and select GUID, click on OK, then set the format type to MacOS Extended
         (Journaled, if supported), then click on the Apply button.
     3. When the formatting has completed quit DU and return to the installer.  Proceed
         with the OS X installation and follow the directions included with the installer.
     4. When the installation has completed your computer will Restart into the Setup
         Assistant. Be sure you configure your initial admin account with the exact same
         username and password that you used on your old drive. After you finish Setup
         Assistant will complete the installation after which you will be running a fresh
         install of OS X.  You can now begin the update process by opening Software
         Update and installing all recommended updates to bring your installation current.
Download and install Mac OS X 10.6.8 Update Combo v1.1.

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