You are not listing what your original machine speed was, the OSX version of your install CDs, or the original video card. Since your install CDs were intended for that platform, the info is relevant.
I'd suspect the video card. Assuming your machine came out well before the Radeon 9800, the install CDs will not have drivers for it, while the existing hard drive install does.
Try running the installers manually and install to a spare partition. Then apply updates as needed - including the 9800 drivers. You don't usually have to boot into a fresh install before applying updates. After the updates are applied, boot from the spare partition. You did format with at least one emergency partition so you could do tricks like this, right? A spare HD will work just as well.
Alternatively, copy & modify your install CDs. Copy into a disk image, add the updated Radeon kexts to /System/Library/Extensions/ and burn as bootable. You might need Toast for this, I'm not sure if Disk Utility can do bootable CDs.