Kernel Panic on Start-up, but boots up in SafeMode and off install disc. Ran Disc Utilities - but still get kernel panic.

MacMini2,1 [mid-2007] running OS10.6.8

Kernel Panic on start-up even after shut-down and restart. Managed to boot-up in SafeMode and repaired Disc Permissions. Restarted … kernel panic screen again.

Booted-up off Snow Leopard install disc. Verified and repaired disc in Disc Utilities. After fixing a few things said everything was OK. Restarted … kernel panic screen again.

Any thing else I can try? Is there a way I check to see if it is a hardware or software problem? Would reinstalling OS "fix" the problem?

Thanks

E