If you have Mac OS X version 10.0.4 or earlier installed, the hard disk must be erased prior to installing version 10.2 or later. The Installer offers an option to "Erase and Install."
Symptom
When you select a volume that contains Mac OS X 10.0 to 10.0.4 system software, an alert box with this message appears:
"You cannot install Mac OS X on this computer without changing your install setting."
Solution
The version 10.2 "Mac OS X Install Disc" or "Mac OS X Upgrade Disc" cannot be used to upgrade Mac OS X versions 10.0 to 10.0.4. The Mac OS X 10.2 Installer can upgrade Mac OS 10.1 or later.
Choose "Erase and Install" in the Mac OS X 10.2 Installer.
Warning: Choosing Erase and Install will completely erase the contents of the chosen volume before installing Mac OS X 10.2 or later. Be sure to back up your files before continuing. To learn more, see
Mac OS X: How to Back Up and Restore Your Files".