Macbook Pro will not load OS and will not boot from Install Disk

When I try to turn on my macbook pro it goes to the gray logo screen with the spinning gear however it does not progress from there and then after several minutes it proceeds to restart itself and the same process repeats itself. I have tried to boot into single user mode with success and have run /sbin/fsck -fy and that has returned that the volume appears to be ok. However, when I hit reboot it returns to the same process of the gray screen and spinning gear to black screen which repeats. When I boot into verbose mode it progresses to AppleYukon2: RxRingSize <= 1024, TxRingSize 256, RX MAXLE 1024, TX MAXLE 768, ST MAXLE 3328 then it stalls for several minutes and then it shows continuing
synchronizing disks... Killing processes
then it says some other stuff to fast to read.

When I try to boot from the install disk it will not boot from holding the c key it goes through the same aforementioned cycle. When using option to boot I can see the Disk then when I select it the cycle happens again.

Also I have XP installed and I am able to boot into that successfully. Any help would be greatly appreciated.

Not sure if I left anything out

-bryce