ibook Clamshell (firewire) OSX boot problem

I just today received an indigo ibook clamshell (firewire) laptop from ebay. I don't plan on using it for any real productivity, but just for fun. I knew it wasn't coming with an operating system so I prepared by collecting some like OS9 and OSX 10.1. After putting some of these discs in the drive and booting, I think I have found that the disc drive does not work (that, or the drive won't read DVDs, but OS's don't fit on CDs). I called up apple tech support and the guy suggested booting up my macbook pro (late 2008) in target disc mode and connecting the computers with a firewire cable (luckily, the ibook has a firewire port, and also luckily, my external harddrive had come with a firewire 800 to 400 cable). I popped the disc into my MBP and connected the computers. After some fiddling around, I have been able to boot the ibook from the OSX 10.1 disc, which is in my MBP, which is in target disc mode.
This seemed to be great, until nothing happened. When it boots, the little mac comes up with the face on it and my cursor comes up with the spinning color wheel. This goes on until something that really confuses me happens. The wheel keeps on spinning, but the little mac icon at the center of the screen turns into what looks like one that has been literally torn in half. It has craggy edges and everything. I assume this means something along the lines of "there's something wrong with the disc and/or computer," but I really have no idea.
If someone could at least tell me what the broken mac icon means, that'd be great. I would love it if someone could offer me some help.
Thanks.
By the way, the specs for the ibook are:
366 MHz G3 processor (single core)
192 MB RAM
10 GB HDD
12.1" screen
Airport wireless card
It has a disc drive, although I am not sure of its functionality
It has a USB 1.1 port, a firewire 400 port, ethernet jack, a 4-pin ethernet looking jack, and audio jack