If you are trying to install Mac OS X 10.3 on an iMac with a tray-loading CD-ROM drive, the hard drive is an ATA hard disk with a capacity of 8 GB or more, what do you have to watch out for?

– you must select a destionation partition for Mac OS X that is completely within the first 8GB of the disk or the Mac OS installer will not allow the installation to continue.

See KB article #106235 Mac OS X: Disk Appears Dimmed (or Grayed Out) in the Installer

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