How to Re-Install OS X from Disc

Bought a new iMac and now want to prepare my old G5 for selling, clean it up in the original state.
When I insert Disc-1 and chooses "Install Mac OS X and Bundled Software" the software asks for a restart.
After I entered password the system re-starts but after a few minutes the disc is thrown out
and on the complete grey screen appears a tiny folder with the two faces of finder and next with a "?".
Then after a few minutes the original startscreen (login) appears.
What am I doing wrong?

Instead of doing it that way, insert the disc and restart. Immediately after hearing the startup sound, press and hold the C key. This will force startup from the optical drive with the Mac OS X installation disc.
If the disc is still ejected for some reason, start up with the Option key held down. This will get you to Startup Manager. At that screen insert the Mac OS X installation disc. It should appear on the list of startup options. Select it and continue the startup; that should start it up from the optical drive.
When you get to Installer's first screen, go up to the menu bar. Under Utilities, select to run Disk Utility. In the sidebar, select the internal drive; make sure you select the DRIVE and NOT the volume indented under the drive. Go to the Erase tab. Click on +Security Options+ and select the option for +Zero Out Data+. That will write zeros to all drive sectors during the erase and make your data essentially unrecoverable with data recovery software. Back on the main window, name the volume +Macintosh HD+ and set the format to +Mac OS Extended (Journaled)+. And Erase the drive. Because of the zeroing of data, this process can take up to a few hours.
Once it completes, quit Disk Utility to go back to Installer. Proceed with the standard installation onto the now blank volume. When it restarts, it should open Setup Assistant. Quit and shutdown. When the new owner start up, it should go through Setup Assistant again (it should be like when you started it up the first time).
Be sure to provide the new owner with the original disc(s).

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