Problems trying to erase and reinstall iBook G4 to factory settings

Question

I am trying to reinstall the factory settings on my iBook G4 so that I can pass the computer on to my parents. I tried installing from my two install disks, using the "erase and install" option. Disk 1 worked fine, everything proceeded normally, and then the computer asked me to insert Disk 2. From that point on, the thing seems to be caught in some loop. I get the "preparing installation" message, and then it starts to install, but then suddenly the screen goes to blue, and then it comes back on as the beginning of the "preparing installation" progress bar again. It does this on a continues loop. When I opened the Installer log, the errors I see say "can't instantiate package" for keynote 2, iWork Font, iWork Extras, and GarageBand.
At some point after it goes through this loop, it gives up, tells me there were errors and to reinstall OS X. It ejects the disk, and then prompts me to reinsert the Disk 2 again. When I do, the whole thing starts all over again. Please help! I don't know what else to do.

Answer 1

You may have to use the Disk Utility (on booted installer disc) to see
if it can 'repair disk' and also consider checking the optional tools it
has, to use the one that over-writes the hard disk drive with random
zeros; and then reformat it to HFS+ since it could have a problem.
When you do get a system installed, be sure to run 'repair disk
permissions' from the new system's Disk Utility.
In fact, to start up in SafeBoot and then run DU's repair disk permis-
sions can be helpful; prior to any updates or upgrades.
{Another way to remove user files could have been to use a different
plan and remove the user account, replacing the admin/owner one
with another new admin user account. There is a way, and it likely is
in the Apple Support knowledgebase. The topic gets revisited here.}
If Disk Utility - on OS X installer - finds a problem it can't fix, before
trying a reinstall from the booted installer disc, you may have to see
about getting a third party disk utility compatible with the OS X you
are trying to install and use that to repair the computer's hard drive.
DiskWarrior is among the popular; but note this isn't a one does all,
it may be enough to fix the hard disk drive's issue or see if it is OK;
though there are other third party disk utilities which fix other stuff.
Good luck & happy computing!
edited.