What is a "reinstall widget"?
What does it say under Apple menu > About this Mac?
Boot up holding command-r keys into your Recovery Volume.
The screen should give you these choices...
Restore from TM backup
Reinstall Mac OS X
Get help online
First run Disk Utility Repair Disk, if you get errors run until no errors reported or reports "the disk cannot be fixed". Then, choose Reinstall OS X. This will be an install "in place" and shouldn't effect any of your own data or settings.
The widget I am referring to is the Recovery Volume that I am getting to by holding down the Command-R during the startup. The disk is in good condition as well.
I go to the second option "Reinstall OS X" ( I can see here that the photo is the Lion not Mountain Lion)
once i accept the terms it says that I have a newer version of software and wont let me continue.
I am running 10.8 as it states below.
Any ideas? Thanks!
Not that I know of in the installer but what happens if you log into MAS with the other ID, can you then go to Purchases and DL 10.8. If that works put the installer on another disk. But that won't be an "install in place" like you'd get from Recovery, it will overwrite the disk.
I'd advise contacting MAS.