Non stop Kernel Panic

Here is what happened. I tried installing a boot camp partition it kept getting errors and saying that the drive permissions needed to be repaired, everything other than that was working fine. So I tried repairing permissions and it failed , the boot camp assistant now recommended I backup and reformat. So I went into disk utility erased the drive and installed my back up.

Now whenever I restart it goes straight away to a kernel panic. I have tried resetting pram (cmd, opt, p, r) right when I boot up but their is only a few seconds before the kernel panic and I am not sure if this has worked. I also went back to disc utility and hit repair permissions on the drive and this did nothing as well.

Im running a late 2008 alumbook. ANY advice you could offer would be greatly appreciated!!!

 

So I have tried another of things. I erased and installed Mac OSX and when it had none of my files on it, it worked fine. I tried reinstalling from time machine using disk utility and again kernel panics.

If I try restoring from Time Machine from inside finder by just selecting all the files in Macintosh HD (oncce already logged in I mean) will it include all of my files or will I be missing some? Is this a problem with my backup drive?

I really could use some help here.