a) what you're doing isn't strictly legal - just so you know.

-Got it but then what nowadays isn't
b) Does your iMac have a DVD-ROM capable drive? A number of those slot-loading iMacs were sold with only a CD burner on board and no DVD-reading capability. Powerbook Install disks have been DVD-ROMs for a few years now.

Yes got that
c) Even if your iMac could read it, the Powerbook Install disk will only install on a Powerbook. The only sensible way around this for you is to boot your iMac into Firewire Target Disk Mode (start up holding down the "T" key), hooking it up to the Powerbook via Firewire cable, and then installing OS X onto the iMac's internal drive from the Powerbook.

Will do