Mac G5 Hard Drive Issue

So I grabbed a Mac G5 off of a friend. I booted it up and first saw the flashing "Finder" icon and question mark folder. When I looked that up, I had to hold to the option key while restarting the computer. Did that: this brought up a screen with 2 arrows. One looked like a circular restart kind of arrow and the other was a simple right arrow. After trying both of these arrow buttons (Since I couldn't find their meanings online), the "restart" arrow button did something... I don't know what but the cursor turned into an hour glass for a minute but nothing obviously changed/nothing obviously happened. The "Right" arrow didn't do anything. After this failed screen, I kept researching online. I decided to try and find my Macbook's MAC OS X Installation disk. I found it and put it in the G5. While holding C during the restart, Mac OS X installer started up. It asked what language I'd. I clicked english. A little load bar came up for about 2 seconds and then a pop up saying "Could Not Install Disk" (or something along those lines) showed up. No reason why, no error code, no other options besides ok and restart. So I just clicked ok because "restart" would just bring me back to where I just was. After I clicked ok, the computer stayed on surprisingly. So since I had the chance, I tried everything I could; about, file, utilities, window, etc. I clicked the apple logo, looking to see if I could restart it that way, but everything in that drop down was faded out. The only tab without fade outs was the utilities tab. So I clicked it and saw Start Up Disk, System Profiler, Disk Utility, and Back up. Naturally, I clicked on Disk Utility just to check if the Hard Drive (that was not being recognized at start up would be recognized at all). Surprisingly, it showed up! So I verified it, repaired it, and even partitioned it to clear everything that was on the hard drive off. So after seeing that was recognized, I clicked on Start up Disk to choose that hard drive (I think it was called Maxtor or Maxton or something like that) but it didn't show up in that utility program. SO.... after all of that my question is: Why won't my hard drive (which apparently "works" fine and is recognized) be recognized to use as the computer's start up disk and how can I get it to. I need this computer for my recording studio and I have had nothing but issues so far. ANY help or recommendations would be much appreciated.

The simple answer's are:

- the G5's HD has no valid OS installed on it
- the MacBook disk will not work on the G5
- you need a retail OS install disk for the OS version you want to install (not a gray disk)

- Nick