Then I read the Read Me of the Installer and find that it likes the first partition to be less than 8 GB. News to me, since I was able to nuke and reinstall on my old 40 GB drive before without a second partition. Anyway, I repartition the drive with one 8 GB partition and the second containing the rest of the disk. Installer now tells me I can install on either partition, I choose the first one. An hour later at the end of the installation "error occurred during installation, please try again". Now I'm trying on the larger partition but not holding my breath for any success.
The 8 GB shouldn't apply to any Mini Mac at all, only far older ones.
Tough to tell what is wrong, but try this next time...
1. Insert the Mac OS X Install disc that came with your computer, then restart the computer while holding the C key.
2. When your computer finishes starting up from the disc, choose Disk Utility from the Installer menu. (In Mac OS X 10.4 or later, you must select your language first.)
*Important: Do not click Continue in the first screen of the Installer. If you do, you must restart from the disc again to access Disk Utility.*
3. Click the Erase tab.
4. Click the disclosure triangle to the left of the hard drive icon to display the names of your hard disk volumes and partitions.
5. Select your Mac OS X volume.
6. Highlight the drive, select Erase Tab, then Format type... MacOS Extended Journalled, select the Security Options button, choose Zero Out Data, Erase... after completion hopefully you'll be able to install.
How to format your disks...
http://www.kenstone.net/fcphomepage/partitioningtiger.html
PS. No need to even attempt Permission Repair if the Disk has Errors, that must be corrected first.