Macbook unknown admin help!!

Have you tried calling AppleCare or contacting a retail store? As long as you have proof that you bought it and that you are the current owner, they should be able to help. If not, Best Buy offers a service that costs either $25 or $50 to retrieve it.

 

First, for your install CD not to boot, something must be wrong.

1. As soon as you power on your Mac and hear the startup chime, press and hold down the C key.
2. Are you SURE this CD is the correct install CD for this Mac? Is it a retail CD?
3. Is the CD damaged?
4. Try starting holding down the Option key instead. You should see your hard drive AND the CD. Select the CD and try starting that way.

Second, have you considered backing up everything and performing a clean install? You'll be able to set your own password.

 

Assuming you are able to find the correct install disc and have between OS X 10.1 and 10.6, see this for steps on resetting the original administrator account password.