I don't have a lot of experince with OS 9 but i think i know how to get it booting into OSX again. In OS 9 go to the apple in the top left of your screen and click it. I belive you then click on extensions from the menu (not entirely sure. could be something else.) and go to Chooser. If it's not under extentions i know it's somewhere in that apple menu. Then select OSX and click restart. As for installing OSX try booting the Powermac in Firewire mode and then use the ibook to install it. I'm not sure if 10.0 can do firewire mode though.

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"I do not condone, nor suggest the use of PCs."- Maestro