Now this proofs that these issues must be snow leopard related (software related) right?
Well, yes & no. The problem seems likely related to the instance of Snow Leopard installed on your MBP, but not necessarily to Snow Leopard in general. IOW, there may be something wrong with the OS installed on your HD, such as a damaged or missing extension that supplies DVD/CD functionality.
The usual test for this sort of thing is to reinstall the OS but obviously you can't do that if the optical drive ejects the Snow Leopard DVD at startup, preventing you from booting from it. It isn't clear if anyone tried that. If not, try this:
1. Shut down your MBP.
2. Insert the Snow Leopard DVD part way into the slot.
3. Start up the MBP.
4. As soon as you hear the startup chime, quickly insert the DVD fully & then hold down the "C" key.
5. Continue holding down the key for several seconds after the gray screen with the Apple logo & spinner appears.
6. Hopefully, your MBP will not eject the disc & will start up into the Snow Leopard installer. (This will take a minute or two so be patient.)
7. Follow the prompts to reinstall the OS.
If this does not work (& it has not already been tried),
Reset your Mac's PRAM and NVRAM & see if anything changes.
Also if it has not already been tried, see if there is any difference when
starting up in Safe Mode.
BTW, it isn't unusual for AppleCare customer support or Apple Store personnel not have heard of problems that affect relatively few users. So while it may not be of much consolation to you, yours appears to be a rare one.