G3 boots but nothing opens

I just bought an Imac G3 graphite in color. The only info I can get too says Mac OS X, Version 10.0.4 (build 4R15), Memory 768 MB, Proccesor- Power PC G3. It is a slot loading system also. It starts up fine and goes straight to the desktop. There is a user name, 2 internet icons, and a desktop icon on the screen. I can get to the Library but either the folders are empty or if there is a file I get the message" There is no application to open the document" for any file or app I have tried. It does nothing when I click on help, System preferences, or any other link and most folders. It is like there is nothing there. When I do try to search for an application to open a file there are only folders and they all dead end. If I open the finder folder at the bottom of the screen then click on the users name it shows many files, apps, and folders and they all give me the "no application to open" them window. I can find the applications to install programs but they all give me the same no app window when clicking on them. Here's the good news, I do not have any software for it. I have never used a Mac before and have always wanted to and the guy gave me a good deal on this.I only paid $50.00 dollars but that was a lot to me. I did research a bit before deciding to buy it and knew I had a lot to learn but I do not think I am the problem here. If I am what am I doing wrong? Also if I log off then try to log back on it asks for a password. Would this still boot to desktop without a password from a fresh start? Like I mentioned from a fresh start or restart it goes to the desktop and everything in the start up window seems like it is loading all programs with out any troubles. When I click on the double arrows on the right side of an open window it says, Applications(Mac ) OS 9) and below that, Apple Works 6. But they do nothing either when I click on them. It seems I most likely will have to find a restore disk and do a clean install on it. I am disabled and on a limited income so it will be awhile saving up for one unless you might know of another solution. Thank you very much for your time and any help you may have. Is there a way to find out more information about the specs on this? I can get to the command line but cannot find what commands to type in to find information. I did type in fsdisk and everything checked out on that. What disks would I need to either try to restore this, or install a new OS? Will an older OS work like 9.4? The more I search for answers the more confused I get. LOL! And does anyone have the disks I need for sale at a reasonable price? Thank you!