I am having exactly same problem as the fellow who started this post. Hubby's March 2009 intel iMac 20 inch running 10.5.8
I followed the advice here.= using Leopard disks I booted from 10.5 disk, ran disk utilities repair needed but oodles of permissions fixed. NOTE: the Imac readily booted from 10.5 DVD.
Then downloaded fresh copy of Combo 10.5.8 update. Installed flawlessly.
Then tried again to install Snow Leopard.SAME PROBLEM . iMac sees the DVD . I start, click the agreement, customize (don't want all the languages etc) installer starts . Approx when the progress bar hits 40 minutes or so, the iMac monitor goes to sleep or goes dark (as when in sleep), the iMac reboots spitting out out the 10.6 DVD.
I also cannot start from the DVD by holding down C key.boots and ejects DVD
Tried booting while holding down option key, also did not give me choice to boot from DVD
PS Had apple support call tonight . The fellow was nice and USELESS. I told HIM what to do , following the instructions given here by RC-R and others.
But the fellow did confirm asI recall with 10.6 the install no longer requires the DVd to boot.
Very peculiar. I have booked a second support call. Maybe the next guy will know something or know where to look up the issue. Obviously there are two of us here with same problem. There may be more.
A bad batch of iMacs?