[G4] nonexistent disk icon

[Roxylee]

Hi, smart people.I need advice. My daughter recently bought a used G4 
733 MHz AGP which had 2 small internal hard drives. She took these out 
and installed a new 320 G hard drive. Yeh, I need to know the best way 
to get it to recognize a drive larger than 128 G, but that's not the 
main thing I need advice on. Two other problems:

1) After installing system 10.3.9 onto the new hd, the former hd icon 
is also showing up on the desktop and in Disk Utility, although the 
disk has been physically removed. Ejecting it makes it go away, but at 
restart it reappears. She tried erasing it, no luck. Is there a way to 
fix this?

2) She tried to install iLife 05, and the install disks appear to be 
empty- just an alias shows up. I opened it on my computer and it was 
there.

Anyone know what we can do to solve these 3 problems? (Please use 
layman's terms and step by step non-tech language.:-)

Thank you muchly,

Roxylee