Macbook Air mid '11 A1370 - can't do anything in OS even after formatting ssd

Macbook Air mid '11 A1370 - can't do anything in OS even after formatting ssd. I have the macbook air software reinstall drive that includes mac os x v10.6 (model a1384) that I've used several times to reset to factory settings. I am still unable to do anything in the OS once it boots - I eventually get the ballon ball of death and then it sits there and clocks for hours. Wanted to see if I could get some advice. I know it only has 2gb ram, but should I try to download an older version of OSX to install and see if I can run it? Thanks in advance.