Stuck in Kernel Panic Screen at Startup!

My MacBook crashed (first problem in 2 years) (it had the apple logo with the bar that would only go 10% of the way, go back to 0% then 10% then shut off) and I had to restore from my time machine backup, which worked fine except for the fact I choose my windows xp boot camp partition, so I had only used 35gb of my 80gb hard drive.

I wanted to reinstall windows xp on my MacBook. Since I couldn't reparation the start-up drive, I had to do it from the Leopard Disk 1. I then restored it from the time machine backup, it shut off after I left it for 15 or so minutes.

Then I tried to restore it again. It said it worked so I restarted it but I've been having the white screen with the apple logo, but no turning circle that then goes to the Gray screen that says.

"You need to restart your computer. Hold the Power button until it turns off, then press the power button again."

and then that again in 5 other languages below (same screen, I believe this is a kernel panic)

I turned off and then back on but it would have white apple screen (no turning circle) then be stuck for ever.

I then preformed both a quick and full apple hardware test. It said everything had passed.

I tried to repair disk permissions, verify disk permissions, verify disk and repair disk.

I tried holding down the shift key after the start up chime but it didn't make a difference (still white screen without loading circle then goes Gray with kernel panic message.

If any one could help it would be greatly appreciated.

(Also I don't know if this will help but I upgraded the RAM with 2x2gb

and I'm running snow leopard 10.6.2)