Unable to install Leopard onto my iMac G5

This is my first post here so please be patient with me if I do not do a good job explaining my problem.....here we go.
I have a 20" iMac G5 purchased back in 2004. It is what I believe was referred to as a special edition and came with a wireless keyboard and mouse. It currently has the minimum 512 megs of ram (I've ordered 2 Gigs for it yesterday), 150Gig HD, 1.8Ghz (not at the computer right now so cannot confirm the CPU speed). It currently is running OS 10.4.11. Ok, now onto the problem.
I tried to install Leopard Family edition, which I purchased at an Apple Store. I have tried and failed to install 10.5 four times now. The first attempt would not even pass the DVD check. It says the install DVD is damaged. That is not true because it loaded just fine on my wife's 12" Macbook.
In any event, I do have an external HD which is used for backup, via SuperDuper. Therefore, I have not lost data in case you are wondering. Each time I installed I would select the erase and install option. Each time, I get a different error. It will pass the DVD check then fail about 15 minutes into the install. It will give a yellow triangle window and say the Source Media is damamged. Another error in another install attempt says something to the effect that it cannot find something (cannot remember what) on the destination drive.
After these attempt, I reinstalled 10.4 and managed to get the system running again. I repaired permissions and ran the Verify Disk from Disk Utility and everything checks out. I had a technician come help me and ran DiskWarrior and seem to believe the HD and permission are fine.
I have had a few problems prior to the Leopard install, which may be the problem to begin with. Mainly two problems, the computer will not always come out of sleep mode when clicking the mouse and/or keyboard. I also have had many Kernel Panics. These two issues have ocurred over the last year but have increased in frequency. Have not seen a Kernel panic since I reinstalled 10.4.11 but still will not always come out of sleep mode. BTW, I did get a USB keyboard (not apple) and a mac mouse and have been using them since last night.
Ok I will stop here for now. I aplogize for wordiness and disorganization. Please help..

I received my external DVD drive and tried to install Leopard. No success. I get the same error. It appears to fail about the same time. It spends some time doing work before it calculated the estimated install time. Just after it calculated an install time (about 3 hours) that is when I get installation failed error. To me, it would eliminate the internal optical drive.
At this point, I am at a loss of options. I could replace the Hard Drive next I guess. I am beginning to wonder if I should just save my money and buy a refurbished Intel iMac....
I did buy 2 Gigs of RAM (EDGE) which is supposed to be compatible with my system. When I installed it the computer would start buy the screen stays dark. About 30 seconds after startup the cpu fans spin up to full rmp and the computer remains that way until I hold in the power to power down. I tried removing the RAM one at a time and still no joy. I finally removed it and reinstalled the 512 ram and the computer booted no problem. I have already talked with the site I bought it from and I am going to send it back.
If anyone has anymore comments I would be most appreciative for additional help.

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