Odds that this Macbook is repairable?

It says Unsupported CPU (In the top of screen), I think you are trying to boot from an unsupported OS Install disk.

Edit: which OS X Install version and what model Macbook?

 

Next likeliest is that the disc is fine.

But it's the wrong one for the computer. Try a retail build disc is the next step. You haven't definitively ruled out Step 1 yet, You're at $0. For $20 you're at a brand spanking new Snow Leopard retail disc.

 

I had this issue on my Mac Mini a while ago. Turned out I was trying to install from a retail Snow Leopard disc.

The Apple store guy asked me to use the disk that came with the machine and it worked. I didn't know some of them were so tied to a certain version.

 

Certain Mini's and Air's are pretty darned tempermental. I haven't come across a MBP yet that wouldn't boot from a retail disc.

Edit: Ok. I lie. 2010 Sandy Bridge and up won't boot from a retail SL disk because the newest retail was 10.6.3 and they require 10.6.6 or better. So in looking at the OP's model (02/2011 release 13") the SL retail disc is off the table.

Flash drive install or target disc from a newer Mac

 

Your machine needs a minimum OS X version of 10.6.6 as far as I can tell, it's a Chinese Version?
A retail disk will not work, it is not 10.6.6.

I am not sure but what happens if you press Command-R at startup, do you get the recovery boot?
If so you can install from there.

 

This. Give it a shot, if you have the option, you may be able to do a clean install, or at least determine what the problem is. Are you trying to upgrade to Lion or ML?

 

Its the freaking hardware drivers that make or break the installation. When Apple supplies retail version of an OS, I would hope they have bundled all the possible drivers for their various machines. But doesn't seem to be the case.