If anyone can help me they are genius to me

[elander]

If you install Mac OS X on a Mac that needs a firmware upgrade, you'll completely hose it. I've done that, and friends of mine have too. The Mac's just died and couldn't be revived.

Try to find an older version of Mac OS (8.6 or so), install that on the hard drive, and upgrade the firmware. Then move on to OS 9 from there. On a 266 iMac you probably don't want to run OS X, as it might get painfully slow. I do suggest that you give it a try though, as YMMV.

But don't, please don't, try to install a system newer than 8.6 before you upgrade the firmware, you'll destroy the computer!

[Natobasso]

Don't install OS X on that computer at all because it will run like crap, if it runs at all. You'll need more ram and processor speed than that old iMac has in it.

You could try zapping the PRAM on start up (Command + Option + P + R) and then see if that shakes things loose enough for you to use the OS 9 that's currently installed.

In 9 you can also start up with the Command + Option keys held down till you see "Are you sure you want to rebuild the Desktop" and click yes/continue. You could have a very simple problem solved with these two solutions.

Let us know what happens.

[albloom]

Yeah, you need a firmware update, but that shouldn't stop OS9
from installing on the HD. Afterwards, startup from the HD and
then apply the firmware update.

Since you booted from CD, the updater wanted to install and run
from the CD. Not likely.

[Ric9]

Cliffyboro:

By now you should be up to speed as to what you purchased. But if not, I'll try to inform you.

You purchased a 2nd generation iMac commonly referred to as a Rev.B. There have been 22 newer imacs produced since and the new iMacs on the market today are Revs 23-27. The iMac Rev.B was produced in 1998 and was discontinued in 1999. The Rev.B iMac 233 MHz PowerPC 750 (G3) processor, 32 MB of RAM, a 4.0 GB to 6.0GB hard drive, and a Rage Pro Turbo graphics acceleration card to include a crystal-clear 15" color screen.
The hard-drive, spins at a paltry 4400-RPMs (todays hard-drives spin at 7700 RPMs) and this machine's max RAM is probably 256MB from 2, 128MB RAM chips.

I agree with IBJ in that I hope you are not using this '20 revision behind', 6-7 year old machine, to ACTUALLY form an opinion about MAC's. Because this would be like buying a Ford PINTO to compair against todays modern cars.

I agree with Cheryl in that you purchased this iMac with a faulty OS load. Every iMac, fresh out of the box, loads and runs on the 1st try.

G/re/P is correct in that you should attempt to get your money back!

Elander too, is correct, in that to resolve your problem, you need to revert to OS 8.5/8.6 and then upgrade into OS 9.

The machine you have can be upgraded to OS 9.2.2 but it can not handle the current generation OS, OS X. It doesn't have the RAM support, the CPU is WAY too slow and the hard-drive is just, plain, clunky. Ohhh... you can spend some money to update parts here and there, but in the end...
You should have done some homework, Dude, as you made a bad choice by selecting THIS machine to get acquanted with Apple!