MacBook wont allow reinstallation of OS?

Try this:

Drive Preparation

1. Boot from your OS X Installer Disc. After the installer loads select your language and click on the Continue button. When the menu bar appears select Disk Utility from the Utilities menu.

2. After DU loads select your hard drive (this is the entry with the mfgr.'s ID and size) from the left side list. Note the SMART status of the drive in DU's status area. If it does not say "Verified" then the drive is failing or has failed and will need replacing. SMART info will not be reported on external drives. Otherwise, click on the Partition tab in the DU main window.

3. Under the Volume Scheme heading set the number of partitions from the drop down menu to one. Set the format type to Mac OS Extended (Journaled.) Click on the Options button, set the partition scheme to GUID (for Intel Macs) or APM (for PPC Macs) then click on the OK button. Click on the Partition button and wait until the process has completed.

4. Select the volume you just created (this is the sub-entry under the drive entry) from the left side list. Click on the Erase tab in the DU main window.

5. Set the format type to Mac OS Extended (Journaled.) Click on the Options button, check the button for Zero Data and click on OK to return to the Erase window.

6. Click on the Erase button. The format process can take up to several hours depending upon the drive size.

DeepFreeze may install something with the boot loader. That means to release the computer completely you need to uninstall DeepFreeze as opposed to simply erasing the drive. You may want to visit the DeepFreeze website and ask their tech support for assistance. I suppose you can't rule out that the hard drive is no longer working.

Since you erased the hard drive you will not be able to boot the computer except with the installer disc.

Let us know how it goes.