I misread. Since you've been able to boot the OSX installer disc, boot from the it and run Disk Utility from the Installer menu. (Utilities menu in 10.4) If a hard drive shows up in the left pane along with your optical drive/media, then your hard drive is being recognized by the machine, it's just not showing up in the installers because the drive hasn't been partitioned for your mac or in the case of the old drive the partitions may be damaged.
Select the drive, and go to the Partition tab and choose the 1 Partition scheme. Select the "Install OS9 Drivers" option if available. Click Partition. Once that's done, quit Disk Utility and Installer.. Boot from an OS9 install CD and install OS9 to the drive to update the firmware to 4.19
http://docs.info.apple.com/article.html?artnum=75130 and then install OSX if that's what you want to run. I'd recommend erasing the disk in installation if you don't need OS9 as it will save disk space.