Erased iMac with no internal CD drive, kernal panic on boot

I recently completely erased my iMac from another computer and accidentally erased everything, including the ability to start up. The CD drive is broken and it's not starting up off the external CD drive, telling me it's in panic: "panic: we are hanging here..."
How can install new software on it from an external CD drive or over a network with my macbook?
Thanks

Hello, 
Sounds like you've corrupted the OS and it's causing a Kernel Panic. USB external drives can't boot PowerPC Macs.
The following process assumes that you have no data to recover from the iMac. If you actually do let us know.
Get yourself a 6pin-to-6pin Firewire cable (example).
Connect the two Macs.
Start the MacBook up and hold down the T key (or go  > System Preferences... > Startup Disk > 'Target Disk Mode'.)
Insert the iMac's Install Disc or a Retail copy of Panther/Tiger into the MacBook.
Switch on the iMac G4.
Hold down the Option ⌥ key down immediately.
When the Installer loads choose Disk Utility from the menu bar.
Erase Macintosh HD and under 'Security Options' choose Zero All Data.
Quit Disk Utility and continue to run the Installer.
Once the install is complete eject the Install disc from the iMac's desktop.
Power down the MacBook using the power button.
Disconnect the cable.
Let us know how you get on.
mrtotes

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