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Thank you, Mike. Yes,I have both install disks. I have been able to load disk 1. However, on completion of the first install, the Mac tries to restart but just returns to the original "kernal panic" message and I cannot insert disk 2. I have reloaded disk 1 several times but only get as far as completing disk 1.
I have also been through the utilities routine to repair the hard drive and it says there is nothing wrong with it.
Hope that helps.
I have tried both the instal disk option and the hard drive version. Both end in the same result: returning me to the original "kernal panic" message.
OK, I've just tried again and the sequence of screens is:
1 Mac OS X: use English for main language -> OK
2 Welcom Mac OS X Leopard Installer -> Continue
3 Licence -> Agree
4 Slect a Destination -> Macintosh HD -> Continue
5 Install Summary, Mac OS X will be installed on the "Macintosh HD" volume -> Install