That Mac should run OS X up to 10.4. Is the disk a retail one, or is it marked for a specific model. OS X disks are notorious for only installing on the model they were supplied with if you don't use a retail disk.
If you are using a retail disk then it sounds like a hardware error - memory or disk would be the prime candidates.
Multiple posts are, unfortunately, very common in the OS X forum. There seem to be serious configuration problems with this forum.