Fix for Kernal Panics in Mac OSX
1) SMC RESETTING
Shut down the computer.
Plug in the MagSafe power adapter to a power source, connecting it to the Mac if its not already connected.
On the built-in keyboard, press the (left side) Shift-Control-Option keys and the power button at the same time.
Release all the keys and the power button at the same time after 25 seconds.
2) PRAM SETTING
Shut down the computer.
Locate the following keys on the keyboard: Command, Option, P, and R. You will need to hold these keys down
Turn on the computer.
Hold the keys down until the computer restarts and you hear the startup sound for the second time.
Release the keys.
IF THE ABOVE STEPS DOES NOT WORK THEN PLEASE FOLLOW THE BELOW TROUBLESHOOTING STEPS.
3) BOOT TO STARTUP MANAGER
Press and hold the option key and start the machine then the machine will boot to the startup manager.
Check in the windows the partition of your HD shows or not.
If it shows then the machine is working fine but if it does not show then the Hard disk is gone for a toss.
4) INSERT THE MAC OSX INSTALL DVD (IF THE HD IS SEEN IN STARTUP MANAGER)
Boot to the disk.
If still you get the same error which you have resported then it will be 2 possible hardware issues.
Either the Hard disk or the Logic Board.
If you are able to boot through the disk and get the language selection link then go to the first option SELECT ENGLISH AS A MAIN LANGUAGE.
Then very next page you need to click on utilities option (Found on the task bar at the top)
Select the disk utility and in that page you get 3 options
1.Some HD size in MB with any of the HD company name
2. Macintosh HD.
3. optical drive
Select the first option and do the repair disk only.
(NOTE: In the install DVD do not run the repair disk permissions as it sets the default permissions)
While repair disk if you get the error that repair disk failed and backup data and reinstall sort of error then you need to do the erase nad install where you will be losing all the data but can restore it if you have time machine backup.