ATA/IDE drives must be configured (usually with a jumper) as IDE Master devices to start up with Mac OS X Server. Thus, the target partition for an installation must be on an IDE Master device, and so must the Mac OS X Server partition of the Installer disc, so that the installer can properly configure Open Firmware to recognize that partition as the startup partition.
The System Disk control panel prevents installation on slave devices by displaying only partitions that reside on ATA/IDE Master drives (or any SCSI volume).
The error message about being unable to configure the Mac OS X Server partition of your disc as the startup device that you received is one of the few hints as to the nature of the difficulty. Because Mac OS X Server cannot start up from an ATA/IDE Slave device, the error is encountered as the installer attempts to save an incompatible configuration.
Typically, only users who have added slave devices, or otherwise altered their IDE configuration will encounter this sort of difficulty.
Standard factory and almost all build-to-order configurations of Power Macintosh G3 (both Blue and White and Platinum) computers will accept installation without complaint. Platinum Power Macintosh G3 computers came in several configurations: all SCSI, SCSI drive and IDE CD, and both IDE. The Blue and White G3 computers have IDE CD and hard disk drives, both masters, but on separate IDE channels, server configurations and some BTO workstation systems may have factory-equipped SCSI cards and SCSI hard disks.
Notes: 1. Only Apple factory-shipped SCSI cards are compatible with Mac OS X Server at this time. Additional SCSI support for versions of SCSI cards other than those shipped in preconfigured systems by Apple will not accept installation of Mac OS X Server, and will not be available from within the Mac OS X Server environment, until the manufacturers of those cards release Mac OS X Server-compatible drivers. The Apple OEM versions of these SCSI cards are NOT identical to those offered by the original manufacturers, and Apple's drivers are not interoperable with non-Apple versions of these cards.
2. Once the Installer has been run on the target partition, the target partition will no longer appear in the System Disk control panel application window, as it has been made an intermediate volume type. Completing the installation successfully will change it to a UFS partition, at which point it again becomes available from within the System Disk control panel application.