10.6 will not install on a late model MacBook Pro

What a surprise ... FedEx just dropped off Snow Leopard and I popped the DVD into a less than a month old 2.8Ghz MacBook Pro running 10.5.8 with all other Apple software updated. I clicked on the Install Mac OSX icon, continue, agree to license and up comes a pic of my hard disk icon with a yellow triangle and exclamation point. When I select that disk (it's the only choice) to install I am told, "Mac OSX cannot be installed on "HD Name", because this disk cannot be used to start up your computer."

There are no other disks or peripherals of any kind connected.
The machine is running on the disk that I'm told "cannot be used to start up"
There are three user accounts. Only one is logged into and the account has admin

OK ... so I restart from the SL install DVD and select install ... same sequence, same result.

Ideas?

Here's the log:

Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: @(#)PROGRAM:Install PROJECT:Install-388
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: @(#)PROGRAM:Install Mac OS X PROJECT:InstallAssistant-48
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Hardware: MacBookPro5,3 @ 2.80 GHz (x 2), 4096 MB RAM
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Running OS Build: Mac OS X 10.5.8 (9L31a)
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: PATH=/usr/bin:/bin:/usr/sbin:/sbin
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: GOOGLE_GILD_RUNTIME_FRAMEWORK_ABSOLUTE_PATH=/Library/Google/Frameworks/Gild.framework
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: TMPDIR=/var/folders/eC/eCq6ZczwH-mk6GFx-b9hUE +TI/-Tmp-/
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: SHELL=/bin/bash
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: HOME=/Users/P4
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: USER=P4
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: LOGNAME=P4
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: DISPLAY=/tmp/launch-wDlc9D/:0
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: SSH AUTHSOCK=/tmp/launch-BFthHF/Listeners
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: Apple PubSub_SocketRender=/tmp/launch-fi1aHB/Render
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: _CF_USER_TEXTENCODING=0x1F5:0:0
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: SECURITYSESSIONID=dae860
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: COMMAND_MODE=unix2003
Aug 28 14:41:09 prime-ivs-macbook-pro Install Mac OS X[332]: Env: Install Mac_OSXVersionString=@(#)PROGRAM:Install Mac OS X PROJECT:InstallAssistant-48
Aug 28 14:41:10 prime-ivs-macbook-pro Install Mac OS X[332]: Using install media product at /Volumes/Mac OS X Install DVD/System/Installation/Packages
Aug 28 14:41:10 prime-ivs-macbook-pro Install Mac OS X[332]: Will bless Mac OS X Install DVD (disk1s3)
Aug 28 14:41:14 prime-ivs-macbook-pro Install Mac OS X[332]: Disk Prime IV: not bootable