Further to joemike's response:
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I would have diagnosed a hardware problem, but it doesn't occur when I've booted into safemode.I have a recollection of a VRAM issue that didn't occur during a Safe Boot, so it might pay you to run your Apple Hardware Test disc a coupl'a times.
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I'm willing to try reinstalling, but the other problem I have is that I get told that I can't install Mac OS X onto this volume.Without specifics I can't be certain, but your error message generally comes up when your installation is of a later version of OS X than is your restore disc; in such a case you must click on "Options" and opt for an
Archive & Install. (Be certain to check the "Preserve User and Network Settings" box if such is your intention and to
back up any data you can't afford to lose.)
If you go the A & I route you should run "Repair Disk" while booted from your restore disc (at the least) before doing so.