I have a Mac G3 with OS 9.2 and OS X
Panther. Last night I was downloading an
update for OS X. When I restarted, it
would only go as far as the gray apple
and displayed a kernal panic. An
interesting message said, "We are
hanging here."
Through processes I'd rather not get into,
the OS X is now erased and I'm trying to
boot from my cd. I have an OS X dmg
burned to disc, but it won't boot up on the
disk. I'm holding down the "C" key on
startup, but it will only start up in the OS 9.
Does anyone know what the problem
might be?

if you dont have osx installed on your computer at all then
yes its going to start up from os9. Can you start up in 9
and then select your cd as the startup disk from the apple
menu? If that doesnt work then the problem is probably
with your disk.