Would it be correct to assume that the PRAM has been successfully reset?
It is possible that the internal 3.6 V battery is bad. This may or may not affect the ability to locate a valid system.
>Mac OS 8 install disk is in there
Is it a Mac OS 8.1 or 8.5 CD that came with the computer, not a plain Mac OS 8 disc?
>Does anyone know the boot command to make it boot from CD?
Normally, one would press the C key. However, if this does not work, you could try holding down the four keys Command(Apple) + Option(Alt) + Shift + Delete(Backspace).