To boot from the install disk, insert, and reboot holding the C key down.
As a suggestion, as soon as you complete the installation, don't run software update. Download the 10.5.8 combo update, repair permissions, install the combo update, repair permissions again, then run software update. Sometimes, Software Update doesn't complete all updates correctly, and odd things can happen. The combo update has all prior updates for 10.5 through 10.5.8. It's located at
http://support.apple.com/kb/DL866