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Restore a hard drive safely

All of the iMacs, G4's, iBooks, G4 & G4 Powerbooks came with a CD labeled System Restore. If all other troubleshooting has failed, this CD can restore the computer back to factory default and get you up and running. However, using it can cause data loss and other issues.
There are several versions of the Restore CD - but they can all do basically the same thing: Restore your computer to factory default. How to use the disk will depend on what outcome you want.
The first step is to start your computer up from the CD. This is accomplished by turning on the computer, inserting the CD in the CD Drive and holding down the C key on the keyboard. Keep holding the C key until you see the welcome to Macintosh, then let go of the key.

You can tell if the computer started from the CD by looking at the icon in the upper right hand corner of the desktop after the Mac starts up. If it is a CD icon, then the Mac has successfully started from the CD. If it is anything else, go to the special menu and select restart and hold down the C key again.

On main window of the CD, there is an icon labeled System Restore - double click it
THIS IS IMPORTANT:
There may be 2 or more options you can select from in the next window. Below is a description of each. Make sure you READ about the option you have selected (on the Mac screen) before clicking ok.
Restore This will restore your hard to drive factory default. It will NOT remove any files and will leave all of your preferences (e-mail, address book etc.) alone. This option will sometimes work and get you up and running. This is the first option to try. It will not work if the system software on the Mac has been upgraded. If it has been, you need to be using the newer system disk - see below.
Restore Saving original items This option will restore the Mac to factory defaults and take all of your data and put it into a folder called Original Items on your hard drive. You will still have access to your data, but all of your preferences (email, address books etc.) will not be active. To get back up and running, you will have to pick through your old system folder and move relevant information to your new system folder. This option will work every time as long as there are no hardware problems like a bad hard drive.
Restore Erasing Hard Drive This option will ERASE YOUR HARD DRIVE and delete any and all data - address book, preferences settings, documents etc. will all be gone. Make sure you have a backup BEFORE using this option. This will wipe out your hard drive and set it back to factory default. This is an extreme measure and should only be used as a last ditch effort.
If you have upgraded your operating system, you need to be using the newer operating system CD and perform a Mac OS system install from it. Start up the computer from the CD and double click the installer icon - then follow the instructions.