Chosen Solution
After installing a new hard drive, great step by step explanation on ifixit, I installed the OS version 10.4.7 which the computer came with. Than I installed the OS X Leopard and connected with the time machine to restore the backup files. This took multiple hours and this morning I got the message restore complete please reboot. which I did but now after rebooting the gray screen turns to a dark gray screen and the message in a black box appears “Restart computer by holding down the button…” Unfortunately everytime I do this I end up with the same screen. I run disk utilities and repair disk, but can’t detect any problems.
Disconnect the external and try. Start in “Safe Mode” by holding down the “shift key”. If successful download the 10.5 updates and get it to 10.5.8.