MacBook Pro :: Factory Reset - Cannot See "Erase & Install" Option

with the new macbook pros, when I follow these steps I dont see an "erase & install" option anywhere. When it says select the destination, only my harddrive appears. When I double clicked on it, an option box came up but nothing said "erase and install". Am I missing something: How to 'Erase and Install' on Macintosh computer that came with Mac OS X v10.6 Snow Leopard and later Part One: Installing the operating system

1. Power on the computer.
2. Insert the Mac OS X Install DVD into the optical drive.
3. Restart your computer.
4. Hold down the Option key while the computer starts up.
5. Select the OS X Install DVD and click the arrow underneath it to boot to the install DVD.
6. When the Mac OS X Leopard Installer screen appears, click Continue.
7. When the license agreement appears, click Agree.
8. Select the destination and click Options.
9. Select Erase and Install and click OK. The arrow on the destination changes to a green and a note on the bottom of the screen indicates you have chosen to erase the volume you selected
10. Click Continue. An Install Summary screen appears.
11. Click Install. A status bar appears on the bottom of the screen while Mac OS X installs.
12. An Additional Information screen appears, advising you that you operating system has been installed. This screen advises you that the bundled applications have not yet been installed. Click Continue.
13. An Install Succeeded screen appears. Click Restart.