I think the message has been that CS2 does in fact install and run properly on Intel based Macs (like the MacBook).
You say it just doesn't install Photoshop and inDesign-maybe a crazy question, but have you checked the options on the installer to ensure that they are selected? You never mentioned anything about error messages. Does it try to install them but fail, or does it just not try at all? Maybe you try installing it while connected to the internet.
If you're still having problems, you might want to check out the
Adobe forums for extra assistance, and further confirmation that it is possible.
http://www.adobe.com/cfusion/knowledgebase/index.cfm?id=331295
EDIT:
Also, what does "the thing of it is, it works on 10.4.8 and it doesn't work on the newer version 10.4..." mean?
10.4.8 IS the newer version of 10.4