Trying to reinstall OSX via CD, but the CD kept getting ejected

I have an old MacBook Pro 2008 that I am giving away and tried to do a fresh install.

I booted via CMD+R and wiped the disk and created a new OSX partition. From there, I then selected "Reinstall OSX", which then show a message "Loading installation information...".

After a while, I get an error that say "Could not find installation information from this machine"

So I tried re-installing with the OSX Install Disc that came with the MBP. However, the CD kept getting ejected when I put it in. Basically it goes like this:

1). Insert CD
2). Heard the CD spinning and the MBP doing something
3). CD ejected

I tried booting up with "Option" button held, but nothing happened and the CD got ejected. Same with holding "C" during boot up.

So now I have a MacBook Pro that I cannot install a CD at all. Is there anything I can do or is this MacBook Pro is trashed now?

--- Post Merged, Nov 30, 2016 ---

I think I fix this 50% of the way. Turned out that I NEED to DOWNLOAD OSX from the Internet. The MBP was connecting to some other Wifi AP that has no encryption, so I changed it to connect to my Wifi AP.

Now I get to the next screen and it asked for my iCloud ID. I don't want my iCloud ID to be stored in this MBP, since I am giving it away. So my questions now are:

1). Is there a way to download OSX without entering my iCloud ID?
2). If no, will my iCloud ID stored in the MBP after the fresh install? I am giving away this MBP.

 

Thank you!