Yep, you must format the drive first.
1. Insert the Mac OS X Install disc, 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 at the top of the screen. (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 Partition Tab, then Format type... MacOS Extended Journalled,
How to format your disks...
(To Install OSX on an IntelMac the Drive it needs the GUID Partitioning scheme mentioned at the bottom.)
(PPC Macs require APM Partition scheme.)
Thanks to Pondini, Formatting, Partitioning, Verifying, and Repairing Disks...
Thanks guys, was actually able to get it up and running after reopening the unit and making sure everything was firmly attached. The new HD was a little loose. Now the only thing is a question as to why I partitioned the HD and how big should each section be. I plan on doing a little more reading on the subject, but if you have knowledge of such things, I'd love to hear it. Haven't done much with the refreshed unit since I want to upgrade out of OS X tiger. Need to find a leopard first, so would also appreciate guides to that elusive animal.
Thanks again for all your help.
Leopard is no longer available from Apple, so you will have look for a black retail install disk on Amazon or eBay. This could cost around $200.
Upgrading the OS from Tiger and Leopard:
Installing Leopard OS 10.5:
Ask for a restore dvd. See if apple will provide 10.5.
Restore Tiger 10.4 & Leopard 10.5 DVDs are available from Apple by calling 800-767-2775 as of January 20, 2013. Collect your Mac's serial number. Prepare you credit card for a workout. There is a reasonable fee.
Ask yourself what you would do with multiple partitions.
-- Want to boot different version of mac os x. Tiger might be the last x that will run classic programs.
-- Backup another drive.