MacBook White Unibody doesn't detect new HDD
To be able to create a bootable volume for Intel Macs you have to use the GUID partition scheme while partitioning a disk in Disk Utility. Apple Partition Table (APT) is for older non-Intel Macs or non-bootable disks in both worlds. The disk size is restricted to 2 TB though.

If no boot option works (C or alt/option) either your optical drive is broken (or dusted etc.) or the DVDs got corrupted.

Then re-attach the 250 GB disk and an additional thumb drive, download an OS X installer app of your choice and create a bootable OS X installer thumb drive.

Put the 500 GB disk back into your MacBook again and boot from the thumb drive.