It's a 2008 MacBook Pro. That should boot over the network? Does it let me know that will happen when I select the option?
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It is a 2008 MacBook Pro. Should that work over the network? And does it let me know that is going to happen when I erase the hard drive?
Only machines after 2010 have Internet Recovery, so yours won't have it.
Let me try and clarify what is going on a bit. With any Lion or Mountain Lion machine the OS creates a 650MB partition called Recovery HD and you can do a command-r boot to start from that partition and reinstall the OS. That is what you are seeing on your machine.
For machines built after 2010, there is an added feature in firmware that allows you to do that same recovery boot even if there is no Recovery HD partition on the drive. This would be useful if your drive died and you had to reinstall the OS on a new drive.
For users like you who do not have Internet Recovery available and are reliant on the local Recovery HD partition, the down side is if your drive dies there is no built in method to get the OS installed again. Apple has provided a way around that for you called the
Recovery Disk Assistant. Install this utility and use it with a 1GB or larger USB key to make a recovery USB key for yourself. This is not the full OS, but just a recovery system like the one you see from a command-r boot. If you drive ever dies and you need to reinstall the OS, you will need this.