Brand New imac  ... dead in the water ... SOS

I just opened up my brand new imac 3.06 duo core yesterday, started it up, all ok. Today I transfered all my settings from my old G4 using firewire and the Migration Assistance in the utilities folder. After transferring data, restarted imac and that's where the problem begins... It will not restart. Every time I restart it stays on the white screen with the grey apple and the clock spinning below it. I tried restarting holding down the D key and then selecting my start up disk, I also tried installing the software disk and reinstalling the software, no luck. What I need to do is do a complete erase and install back to factory settings. Any ideas? When I put in the disk it is not giving me any options.

HI Dale,
I transfered all my settings from my old G4 using firewire and the Migration Assistance
If you transferred files from a previous PowerPC Mac to your newer Intel based iMac using the Migration Assistant, that could account for these problems To see if you have apps that require Rosetta, go here; Intel-based Mac: How to tell if an application is Universal
I tried restarting holding down the D key
Booting while holding down the D key will run the Apple Hardware Test. To prompt the Startup Manager window, boot while holding down the Option key.
What I need to do is do a complete erase and install back to factory settings. Any ideas? When I put in the disk it is not giving me any options.
Insert your install disc while holding down the C key.
If you cannot boot from your install disc, try booting in Safe Mode
You can run Disk Utility (Applications/Utilities) to check the startup disk for errors. Restart by going to the Apple Menu/Restart.
Carolyn

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