This situation is known to occur with versions of Apple Restore prior to 7.1P3. This software came with the following Macintosh Performa models: 200, 400, 405, 430, 450, and 600/600CD.
With the Utilities Disk still in the drive and the message to insert , do the following:
1) Click Quit in the message area.
2) A message will appear stating that Apple Restore is finished. Select
QUIT again.
3) Upon return to the Finder, select Shutdown from the Special menu.
4) Re-insert the Utilities disk.
5) Restart the computer and reset the Parameter RAM (PRAM). To reset the
PRAM Hold down the Option, Command, P, and R keys on the keyboard
immediately after you hear the startup chime. Keep holding down all four
keys until you have heard the startup chime three or four times. Release
all four keys and the machine will startup from the Utilities Disk.
6) Click twice on the Apple Restore program icon on the Utilities Disk to
launch the program. After resetting the PRAM, Apple Restore should run
correctly.
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