I'm trying to restore the ibook G3 back to factory settings, during the installation stage, an eror comes up COULD NOT RESTORE RESTRICTED SEGMENT IMAGE ! I have a disk utility CD, do I install it or is it bootable ? Do you know how I can use the Disk utility to format the drive, also when i bought the item, it said it has a CD-RW and 40GB hard drive, but I cant see the 40GB or so, all I see is just 5GB free space remaining ? How will I know where the rest is and also how will I know if it has a CD/RW ? as nothing is written on the drive ?

Any Mac OS X installation CD should be bootable. To boot from the CD, insert it and restart your computer while holding down the "c" key on the keyboard. There should be an Options button in the Mac OS X installer that allows you to do an "Erase and install" which will re-format your hard disk and re-install the OS. Otherwise, you can format the hard disk yourself using the "Erase" tab in disk utility. Once you erase the disk, you should have much more than 5GB available. To check. click on your hard disk in the Finder and choose "Get Info." If you want to verify that you have a CD-RW drive, open the Apple System Profiler in the Utilities folder inside your Applications folder and click on the Devices and Volumes tab. Under the "Bus" entry one of the items should say CD-RW.