Hi, Kevin -
When you boot to the CD, run Drive Setup from the Utilities folder on the CD. Does the drive appear in the list in Drive Setup's initial window? It should appear, either with the name given to it previously, or as "not itialized" or something similar to that.
• If it does appear, select it by clicking on it once, then select zero-all-data from the Initialization Options item in the Functions menu, and then click the Initialize button - choose Mac OS Extended as the format when asked. Once that's done the disk should be mounted on the desktop, and you can then run the installer to get a working OS back on the drive. Note that zero-all-data can take a while, about one hour per each 10GB of drive size.
Using Drive Setup
• If the drive does not appear in Drive Setup's list, then the cabling to the drive has loosened or is not secure in some way; or, the jumpers to the drive have become dislodged (doubtful); or, the drive is toast and needs to be replaced.
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If you do need to replace the drive, note the information in this Apple KBase article -
Article #25249 - Gray or White Screen After Hard Drive Upgrade
IMac models 350MHz and slower are subject to an 8GB restriction - all OS's must be installed within the first 8 GB of the drive. This means partitioning an 8GB or larger drive such that the first partition does not exceed 8GB - 7.7GB is a safe partition size.
OSX installers will check for that on models subject to the restriction; stand-alone OS 9 installers will not.