Okay so I used disk utility to restore my macbook and now I can't seem to start it back up. I have Snow Leopard disk but it says this
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I don't really understand what you mean by "used disk utility to restore my macbook".
Do you mean you did the following:
1) change partition scheme to single partition, HFS+ journaled, options-> guid partition scheme
2) "restore" from a bootable osx disk image to the partition you created in step 1
If you started from a blank HDD and forgot to set it to guid partition scheme, you need to start over and this time make it guid partition scheme, then create 1 (or more) partition(s). Make the one you want to boot from HFS+ Journaled. You don't need case sensitive.
You can access disk utility from the Apple logo on the install DVD. You click the Apple logo and disk utility should be one of the options you can pick from. In disk utility, you can examine the current partition scheme. If it's "Apple partition scheme" or some sort of Windows-ish or Linux-ish thing, that's the reason the installer is telling you that you cannot install (and also the reason you cannot boot).