Q: Mac OS X Install Disc 1

I'm trying to reinstall to factory settings. I have put the disc in clicked on Install Mac OS X and Bundled Software and clicked restart. The screen goes grey with the apple and pinewheel spining, no options after? I retried many times, what should I do.

I'm giving my old computer to my Aunt, I have already deleted all my files, now just need to reset it....