Either your machine doesn't meet the [Snow Leopard system requirements|http://www.apple.com/macosx/specs.html] - which I can't imagine would be the case for that machine, though I don't know that for sure - or you're using the wrong disk. Note that the gray disks that shipped with one machine will not work on a different one, unless they are exactly identical models. Or, I suppose, you've got a bad disk or hardware problem.