Cant install OSX on this computer

I installed a new hard drive on iMac. Restarting the computer with the install disk I get the message, "cant install OS on this computer." IF I go to disk uility I can reformat the disk and even the system profiler see's the hard drive.  If I go to Startup Disk it does not show the hard drive only the install CD.
Thanks for your help
Dave

first thiing, is the install disc you are using is it the original one that came with your imac?
if so, then your firmware efi may either be out of date or update to date not enabling you to use your install disc.
or your drive maybe faulty... any case you'll need to visit apple store genuis

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