[iBook] Panther Installation

[Peter Nevett]

I am trying, for the umpteenth time, to install OS X Panther on my 
wife's iBook (original version, 300 MHz, OS 9.2.2, 320MB ). As usual 
when I insert the Panther install disc (yes, it's a real retail set of 
black CDs) I get the spinning barber's pole and the message "Preparing 
Installation" . It stays like that for hours, long after the CD has 
stopped spinning.
I have previously looked at the verbose mode screen while this is 
happening and the experts on this list suggest that there might be a 
problem with the hard drive.
Disc utilities finds no problem, repeatedly.
Is it possible to start up the iBook from the OS9 CD, format the hard 
drive and then try to install Panther? I have backed up the iBook but 
is there a danger that I will then be unable to re-install any OS at 
all?
Any other suggestions?

Thanks,

Pete Nevett