What process did you use to install from your hard drive? I am getting errors trying to install from a SCSI CD on a Rev.1 Beige G3. I think the lack of an IDE CD is the issue. If I could install directly from the HD, then I would not have to worry about the CD.
I believe that I tried to copy the OS X CD to one of my partitions and then boot from that partition, but I didn't have too much success.
I think you have to use the Apple Software Restore Application to copy the whole CD to your disk. But, remember, this will erase everything that was on that volume, so do it on a seperate volume. If you don't have the Apple Software Restore, I can mail it to you.