I also got a broken folder icon, but I was trying to install off of a CDR. I tried pulling out my second video card, which I thought would work since its an IXmicro pulled from a 9600. I even tried reinstalling my Apple CDROM as my SCSI one doesnt have Apple ROMs - still no good....
I have a beige G3 DT that started as a rev a 233mhz. It now has a rev B rom, a 500mhz G3, and a SCSI Yamaha CDR as a cdrom drive.
Someone mentioned the firmware update - I assume this is only for "new world" machines?
Liam