Help Please (Question Mark When Attempting to Boot)

I'm new to this forum and need some help. I just aquired a tangerine ibook clamshell from a friend who is moving. When I start up I get the mac face folder with a ?. Having an Imac Dv back in the day I'm pretty sure it was because it can't find the OS, however all I can find is my software install disk which says on the disk "for imac dv models". I get the clamshell to boot from the cd, but when i go to install it can't find a destination other than the cd drive does this mean my HD is toast or is it because of the Install disk I am booting from. Also if it is my HD I'm on a budget and it has a 6gd hd and I can't seem to find another anywhere on the net. Thanks for any suggestions

 

i was affraid of that i have rebooted it several times and still can't get past the ? folder....thanks anyway