Well, would you guess it, turns out it was the OS disc that was faulty, so they replaced it. But not after I asked the technician wether he can confirm that it was just the disc and not the drive and received his assurance of said... Well, turns out that the untrained buffoons that work at iStore branches are as uneducated as they are unhelpful...
I have gotten home and attempted to install the upgrade to MacOS X Snow Leopard 10.6.2 from 10.6.0 again, and guess what, still not working... So I am faced with another 40km trip to isolate the issue, or, as will be the case, a telephonic debate with the idiot who assured me that he had tested the drive... Now, why I said it was the drive as well, was because windows installation via BootCamp doesn't work either, it gets to the point where it says; "Getting Ready To Start Windows Setup" and not a step further (after a two hour wait).
If a computer company wants to act all pompous and holier than thou, then their products should at least work, as of right now they are firing 0 for 3 in every Apple product that I have ever purchased.
Now, the question that I ask is simply this, is this incompetence simply due to the fact that all service staff in South Africa are useless, or is it an underlying problem from the Apple Corporation globally?