Can not reinstall any OS in iBook G312"

I tried to reinstall the OS but I the installation disk detects de Toshiba 40GB HDD with strange characters and does not show up as a disk for installation.

I went into the utility disk (all tabs) but can get the disk working - simply, when I execute the erase option the computer hangs up after a few minutes.

I tried to zero all data in the disk, both with disk utility and DBAN 2.0.0 but nothing works.

Is there anything elese I should try or do before "dismantling" the ibook to reinstall a new hdd???

Thanks for your help