Install problem on macbook A1181

[Tango1960]

Im trying to reinstall my macbook but it gets stuck, this is what happens.
Insert the disc and turn off.
Hold down C and turn on.
Apple tune plays and apple logo appears on screen.
Small circle starts turning under logo.
After 1min circle stops turning and thats it.
I have replaced the HDD cable and to test the DVD drive i connected it up to my mates mac and booted his mac with my drive via Firewire, also repasted the cpu and gpu.
Any ideas
Thanks
I have just pressed Option key and restarted and the mouse pointer has appeared on the screen and can be moved around so it has not frozen.
I have now connected another drive with mac on it and it showed the drive but just froze up again.

 

[session101]

c?? you should be holding down the option key, that will give you the option to boot from CD

ok i see your edit, you can't boot from external HD you need to use a CD or a flash drive

 

[Tango1960]

Thanks session101.
Ok i held down the option key and it has now booted to a MAC OSX INSTALL DVD with an arrow under the disc logo but is just stuck there now, what do i do next.
Thanks
Tango1960
i4
ipad
confused

Ok i clicked on the arrow under the disc logo and it has now gone to an apple logo and is just stuck on that, i think maybe it might be a serious hardware problem, what do you think.