"booting from the CD" means that you're not using the OS on the hard drive. It means you're booting using the OS on the CD.
If your DiskWarrior CD came as a 10.2.6 boot disk, it won't boot on machines that require a newer OS version - like the new Alu Powerbooks or the G5 (they *require* 10.2.7 or later).
Three possible solutions I can think of:
1. Create a new boot CD for Diskwarrior with 10.2.7 (using BootCD or similar tools; search for them on
http://www.macupdate.com )
2. Contact Alsoft and have them send you a new CD that will boot on your machine
3. Install OS X and Diskwarrior on an external hard drive (such as an iPod), and boot from that.
-s*