Install DVD not loading so I can use Disk Utility.

OK. I'm wondering if anyone else has run into this problem. My second Seagate drive provided by apple bit the dust in my iMac (mid 2010 Intel, 27"). The Apple Genius said it was dead according to his diagnostic tools. Its out of warranty and I have no more Apple Care. So, instead of having them install an identical drive that will probably fail in another 12 months, I opted to try to install a new 2tb SSHD from Seagate myself. The install went fairly easy but when it comes to installing OS X (Snow Leopard 10.6.3 - Retail Version from Apple) or using the Install DVD from when I purchased the machine, neither will load from DVD. I can select the OS X install CD after holding down 'Option' on startup, but after that it just spins forever (At least 20 minutes). The install DVD provided with the machine isn't recognized at all. I have also tried holding the 'C' down at startup with the same results. Has anyone else had this problem when installing your own HD? It seems that most people can access the Disk Utility funtionality when booting from DVD. I'm not sure why it won't work for me. One other additional thing. I can actually install Windows 7 from DVD onto the new HD with no problem. (I'm hoping to get DU to load so I can format the new HD in exFat and install Mavericks.) Anyone have any ideas?