Macbook won't allow me to install from disks

Can you read other CD & DVD disks? If so, then your msOffice install disk(s) are faulty.

 

Sounds like you need a Genius Bar appointment.
http://www.apple.com/retail/geniusbar/

Go there and make an appointment at your closest store.
If you can't make it to an official apple store for a genius bar appointment, then visit http://www.apple.com/buy/locator/service/ to find your closest local service provider who can take a look at it.

Or you can always call Apple, you're still under warranty in any event if you're under 1 year old. Did you buy applecare out of curiosity?

 

Ok I did a search because after installing Snow Leopard doing a Clean Install, i discovered that I could not install my MS Office for Mac 2008.
I found out that if I went into my home folder then go to Library then Preferences and look for a file called com.apple.digihub.plist and drag it to the trash, then go out of preferences and stay in Library and look for the folder Caches, and Drag the whole folder to the trash.

Then do a Pram reboot where you hold the Command/Option keys + R+P all at the same time while booting up to reset your PRAM settings waiting for the tone 3-4 times then try to insert my DVD to install and Then It Worked!!!

Just thought I would mention that and something to take note, you may have to have rosetta installed first before doing this for 32 bit applications. The installer might need it to operate.