Startup-flashing folder...won't respond to startup dvd

hi-
thanks in advance for any help you can give me.
i have a small problem that i'd like help with. i have an ibook g3 (dual USB) with OS X 10.4. I went on vacation for a week, and when i got back the computer was having troubles.
here's what's up:
A. a few weeks ago i got an original airport card. i had no problems with this.
B. i also bought a used sony handycam with recordable dvds to use in my classroom. the day before i left for vacation, i downloaded a bunch of videos onto the computer. i left in a rush, so i shut the computer down with one of the mini-dvds in the tray.
C.when i returned and started up the computer, it turned blue, then a folder appeared flashing a ? and a computer.
D. i tried this:
1. Insert the Mac OS X Install or Restore disc.
2. Restart the computer, then hold the C key during
startup.
3. From the Apple menu, choose Disk Utility. Do this in the first screen of the Installer. Don't click Continue. If you click Continue in a Mac OS X Installer version earlier than 10.2, you must restart from CD again.
4. Click the First Aid tab.
5. Click Repair Disk.
6. After repairing the disk, try to start from the Mac OS X hard disk.
With disk utility, the computer did not recognize a disk. No action.
E. hen, I tried resetting the PRAM. No luck.
F. I even tried re-installing the software from the startup disk, but the computer said i needed 10,3,7 or later. I already have 10.4 on the computer, so I don't really know what to do.
G. One last detail is that for the last few months, there has been an odd, faint smell coming from the computer. Have no idea what it is.
Any advice? I live and teach in Korea, so repairs are pretty much on me, as far as I can tell.
tahnks again for any help.
Jesse
dual usb ibook (10.4.???)     I have an original 10.4 start up disk.

OK, that's helpful. DU cannot repair this particular error. However, if you can purchase a copy of Disk Warrior it should be able to repair the problem. Unfortunately, you may still have corrupted or lost files resulting from the problem which cannot be fixed. Even if the drive can be repaired you still may not be able to boot OS X. However, if the drive is repaired and OK you can re-install OS X without erasing the hard drive thus preserving your personal files. This is accomplished by doing an Archive and Install:
How to Perform an Archive and Install
1. Be sure to use Disk Utility first to repair the disk before performing the Archive and Install.
Repairing the Hard Drive and Permissions
Boot from your OS X Installer disc. After the installer loads select your language and click on the Continue button. When the menu bar appears select Disk Utility from the Installer menu (Utilities menu for Tiger.) After DU loads select your hard drive entry (mfgr.'s ID and drive size) from the the left side list. In the DU status area you will see an entry for the S.M.A.R.T. status of the hard drive. If it does not say "Verified" then the hard drive is failing or failed. (SMART status is not reported on external Firewire or USB drives.) If the drive is "Verified" then select your OS X volume from the list on the left (sub-entry below the drive entry,) click on the First Aid tab, then click on the Repair Disk button. If DU reports any errors that have been fixed, then re-run Repair Disk until no errors are reported. If no errors are reported, then quit DU and return to the installer.
If DU reports errors it cannot fix, then you will need Disk Warrior (4.0 for Tiger) and/or TechTool Pro (4.5.2 for Tiger) to repair the drive. If you don't have either of them or if neither of them can fix the drive, then you will need to reformat the drive and reinstall OS X.
2. Do not proceed with an Archive and Install if DU reports errors it cannot fix. In that case use Disk Warrior and/or TechTool Pro to repair the hard drive. If neither can repair the drive, then you will have to erase the drive and reinstall from scratch.
3. Boot from your OS X Installer disc. After the installer loads select your language and click on the Continue button. When you reach the screen to select a destination drive click once on the destination drive then click on the Option button. Select the Archive and Install option. You have an option to preserve users and network preferences. Only select this option if you are sure you have no corrupted files in your user accounts. Otherwise leave this option unchecked. Click on the OK button and continue with the OS X Installation.
4. Upon completion of the Archive and Install you will have a Previous System Folder in the root directory. You should retain the PSF until you are sure you do not need to manually transfer any items from the PSF to your newly installed system.
5. After moving any items you want to keep from the PSF you should delete it. You can back it up if you prefer, but you must delete it from the hard drive.
6. You can now download a Combo Updater directly from Apple's download site to update your new system to the desired version as well as install any security or other updates. You can also do this using Software Update.
If the above is not "doable" but you have access to another Mac with Firewire ports you may still be able to backup your files. Then you can simply erase the drive and reinstall OS X from scratch. Use Target Disk Mode to transfer your files to the other computer via Firewire.
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