Re-installing OS X

so my MacBook Pro told me to reformat my hard drive when I tried to repair it, so I erased it. Now when I repair it in disk utility it says it appears to be OK. Now when I turn on my MacBook Pro it goes straight to where it did with option + restart... Also I tried to re install lion with the Internet but it got stuck at loading installation information and an error came up saying contact apple care. Considering I bought my mbp early 2011 does that mean I need to use the initial CD? Note I downloaded lion from the app store.