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Comments
Yeah, you pretty much want to send back the RAM. I'd make sure it's fully seated first -- sometimes a module will pop up diagonally out of its socket at an angle if it's not fully seated, and that will cause kernel panics. Often the top module will be full seated, but the one underneath has come out and is at an angle.
Assuming we're talking about two modules, you can also test them by booting up with only one in place. If that works and doesn't crash, you can take that out and try the other. By doing this you can sometimes identify a bad module.
I don't know where you got this RAM, or what the brand is, but MacBook memory is a little on the specific side, so it's best to go with RAM that is specifically designated as working with your MacBook. I've had bad luck buying generic RAM on eBay...even if it has the exact specs, sometimes it will cause a laptop to kernel panic as you are witnessing.