The hard drive went on my late 2008 MacBook Pro so I replaced it. I tried installing 10.8 from a bootable USB which failed so I went back to the origional system disks.
When I tried to install OSX from the origional system disks ( 10.6 ) I get the following error:
The installer has encountered an error that caused the installation to fail. Contact the software manufacturer for assistance.
I'm somewhat out of warranty now so taking it back to Apple sadly isn't an option.
Side Note: I was unable to format the new hard disk using disk utility from the 10.6 or 10.8 installers so I connected it to another mac via a USB cradle to format (went fine). The Hard Drive is brand new and shows up as SMART verified.