Macbook install error/fail

I have recently tried to re-install Leopard 10.5.4 onto my Macbook because i wanted a clear out, it installs fine but when it reboots it will not go past the solid blue loading screen. I tried all the install options and i believe it could be to do with my disk drive.

My disk drive has been a bit faulty and also it seems to scrach anything i put in it, maybe a casing issue. I know its not the install DVD as i have used it on other computers since. does anyone have any ideas? could i get a HD bootable version?