This is kind of a hail mary pass, but you can try clearing out the PRAM (restart, hold down apple-optoin-P-R, wait for the chime to play a few times, then let go).
There have been a few reports recently of bad discs shipping with Macs, so that possibility isn't out of the question. Did this disc ever let you boot before, or is the first time you've had the need to try it?
[Edit: Oh, you have an OF password set? Okay. To kill that, remove a RAM module (changing the amount of total RAM is the bypass). On the first boot with changed RAM amount, reset the PRAM as above.]
[edit: And if you do remember the password, you should be able to disable it from within OS X, from the same password utility you used to set it.]