My son has the same MacBook you have and I'm considering installing the same drive. I heard the second generation of the Momentus XT (750GB version) is greatly improved over the first generation, so I'm curious to see how you make out.
Everything should be on the SL disk. Insert the SL CD into the drive, reboot the computer and hold down the "C" key when it's rebooting. When the install menu comes up look for disk utility in the menu at the top. After you've erased and reformatted the drive you can proceed with the install.
BTW, I just read in another forum that you may have to set a jumper on the Momentus XT to reduce the bit rate from 6Gb/s to 3Gb/s so that it's compatible with your MacBook 6,1. Let us know how everything goes.