Can't reinstall os x - please help I'm desperate and at the end of my rope

We have an iMac G5 running OS X 10.4
all of a sudden it stopped working (when we tried to reformat a G3 ipod from PC to mac)
so we restarted - it gave us the question mark
restarted again, unplugged for 30 seconds, still question mark
so we're reading all the support online, disk utility repair doesn't work - errors out
so we go to reinstall from the install disks -
but when it comes Select Destination Volume
there is no volume!! I googled and found that someone said he "formatted the image" or something like that, but I have no idea what that means and couldn't find out how to do it in disk utility or anywhere else.
any suggestions please? going crazy here.
thanks in advance,
k.

k.,
"how does one go about using a 3rd party utility to repair ..."
You go out and buy a copy of DiskWarrior or Tech Tool Pro. Once you have it, insert the CD into the drive and reboot from the CD (hold down the c-key during boot). Then repair the disk and restart.
"...or doing an archive&install?"
1. Insert the Panther or Tiger install-DVD and reboot while holding down the c-key
2. Once you are booted go to the menu and select disk utility
3. Repair the disk and Repair permissions!
4. Quit disk utility and proceed with the installation
5. Under "options" select "Archive&Install" and check the box "keep user and network data".
6. Install Tiger
7. Restart
8. Go to the folder Application/Utilities and run disk utility to repair permissions again.
9. Download (or open if you downloaded before) and install the latest Combo update: Mac OS X Update 10.3.9 (Combo) or Mac OS X Update 10.4.8 Combo PPC.
10. Restart and repair permisssions
11. Go to the Apple menu and select "Software Update"
12. Install all missing updates and restart.
13. Repair permissions
Good luck!
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