I removed the drive and installed it in my dual proc G4 and had the same results. The system, when booted from the resident boot drive, would not recognize the IMac drive even with the disk utility. I dropped an older 6gb drive into the IMac and it works fine.
Just to clarify my phone chain...
Are you running Panther as an upgrade from previous OSX or clean install? I have always run into issues of one kind or another by upgrading. Too many gremlins left behind.
I have a one-and-a-half year old IMAC Flat Screen. The hard drive just quit and I am trying to replace it under Maxtor's warranty. Since the Apple coverage is up I called Maxtor only to be told that even though the warranty stated on the drive says its covered through July 2005, they will not...