It's very interesting how you ended up in this situation.nothing was working on basiliskII It detected a system 7 system folder and mistook it for an OS 9 system folder, so I click on the OS 7 system folder and pressed reboot, it reboots into OS 7 and it shows a blinking folder with a "?" on it, system 7 came out in 1991 and it did not recognize hard drives it only recognized floppies.
Why do you have Tiger restore media burned on a Memorex disc again? Basilisk II might have done something to the Startup Folders and rendered them unrecognizable to the boot loader if they're not showing up there.
Your OS X optical media should pull up just fine under the boot loader or from holding down 'C' after the tone.