Clunking drive on start up, won't boot from CD

Question

This 2003 Dual USB iBook suddenly started with a clicking noise coming from the hard drive. It won't boot from the hard drive, just lots of clicking.
If I put in the install DVD that came with the machine, eventually it will be recognised and the Apple logo will appear, but after a few minutes a circle with a cross through it appears. The hard drive clicks throughout all this and nothing else happens, just lots of clicking.
The HD is no doubt faulty, but I'm not sure why I can't boot from the install DVD?

Answer 1

The iBook should have come with Install CDs instead of a DVD.
You say you are running Mac OS X 10.4. Do you have the Install disc for 10.4 (which is likely a DVD)?
Sometimes using _Startup Manager_ allows you to boot from an optical disc when holding down the c key doesn't work.
If you manage to boot from the Mac OS X 10.4 disc, try repairing the hard drive from Disk Utility on the Install disc.
If this doesn't work, you could try booting into Safe Mode. This will take quite awhile longer than a normal startup because it does a file check and repair of the hard disk.
If this works you will see your normal desktop. Once completely started up in Safe Mode, try to restart normally, and go to Applications > Utilities > Disk Utility. Click on the top hard drive icon in the left sidebar and note the S.M.A.R.T. status at the bottom right of the pane. What does it say?
Select the named boot volume in the left sidebar, ("Macintosh HD" unless it's been renamed). What is the hard drive capacity and how much space remains available on it? Repair permissions on it.
See if you are able to do a little hard drive maintenance to help things out.