boot the MBP while holding down the "C" Key and keep it down until you see the Apple.
This should force the MBP to boot from the CD/DVD

From your description and the picture, it would appear as though the hard drive has not been formatted for use in your MBP.
Can you confirm or deny that this has been done?
If it has not, and you are absolutely sure that the HD is installed correctly, can you hear it running with the MBP powered up, you can format it from the DVD.
Boot with the "C" key and once the installer starts you can choose Disk Utility from the menu bar.
Format the drive as Mac OS X (Journaled) then reboot and install.

Let us know how you get on.