Need help Installing OS X on G3 Wallstreet

Question

See below -  information I found on MacWorld's website.  Before, I had installed OS 9, but  when trying to install OS X, the designated (first) partition was rejected - apparently as too small, by the  installer.  So I followed the 2nd advice and booted from the OS  disc (I have v. 10.2) and erased the HD to create one volume of 11.2 GB.  When I attempted to install the OS however, I found at the Select a Destination window that the disk was also not accepted.  The disk appears in a circle with a red exclamation point and the message:  "Installing this software requires 1.9 GB of disk space. ! You cannot install Mac OS X on this disk.  This destination is not within the first 8 GB of the hard disk."
What should I do, reformat and partition?  Or....??? 
UPDATE:  I've now tried partitioning the volume into two sections - making sure the first one was 8.5 GB.  But now both destination disks are showing up with red exclamation points - what does that mean?  Help, please.
Originally I thought it would be good to have OS 9 and X as dual boot, but now I'm thinking it would be better to have OS X as the main system, since it offers Classic, and I could still use older OS 9 apps and CDs, of which I have plenty.  On the other hand, I've read that this aging powerbook would run OS 9 better.  Either way, I've tarted it up with 512 MB of RAM and a 12 GB HD. 
... insert a system software CD into the CD-ROM drive. You'll need to format the new hard drive, so push the power button and hold down the C key to boot from the CD. If you've booted from a Mac OS 9 CD, launch Drive Setup (found in the Utilities folder inside the Applications (Mac OS 9) folder). Select the drive in the resulting Drive Setup window, and click on the Initialize button to format it.
If you've booted from a Mac OS X Installer disc, select Disk Utility from the Installer menu, select the drive in the left side of the Disk Utility window, and click on the Erase tab. Choose Mac OS X Extended from the Volume Format pop-up menu and click on the Erase button. Once the drive is formatted, install the Mac OS and enjoy your updated PowerBook.

Answer 1

Hi Keith
Again you're relying on my memory but I recall buying a usb card that didnt work and had to return it.  It has to be one with a broadcom chipset for the wallstreet to recognise it.  Macally stuff does work.  I think you can install extra drivers to get usb working with 9.  there used to be a guy on here called (I think) JPL who knew all this stuff.  Have a search under my username perhaps and havea look at the xpostfacto forum at macsales if it still exists!
Internet is very slow because of the video performance- anything with flash is painful. 
No clue on the keyboard- could try some contact cleaner I guess? Or pick up another wallstreet on ebay for spares.
Re installing- get a smallish partition for os 9 and install that first, then xpostfacto.  I think I installed tiger from a disc image as the install disk is a dvd.  It runs better than panther in my experience.  Once its installed you can pop the RAM back in.