Old 2007 White MacBook with new drive can't reinstall MAC OSX

My friend has a white MacBook (mid 2007) and she changed to a new 320GB HDD (old one broke).

Now she's trying to reinstall MAC OSX 10.4 (using the disks that came with the MacBook)

She first used Disk Utilities to format the HDD (and that took 1.5 hours!)

But then, when she tried to install Mac OSX, she got a message, "Software cannot be installed on this computer"

What could be the reason? solution?