I just ran the "Verify Disk" option in Disk Utility, and this is what came up (See Attachment). If you scroll down further, which you can't in the .png, it says "Volume Needs Repair" However, as you can see the "Repair Disk" option is grayed out. Any ideas how to fix this issue?
In order to repair your disc you must be booted from your installation DVD. You might want to back up your data before carrying out the repair just in case something goes wrong.
You can't repair a startup drive so you have to get out your startup disks that came with the computer. Put the CD in restart and hold down the "C" key until the apple logo appears. Go to the Utilities menu and select Disk utilities and repair the drive. Don't stress this too much, it will most likely be repaired with no problems.