It's hard to know .. firstly, what does the Mac OS X disc look like? If the disc is grey then that isn't the disc you need to start from ... you would need the Universal Disc or Full Retail Version of Mac OS X, which has a large X on the label and may be Black for Panther (10.3) and I'm not sure for the earlier version of Mac OS X.
The Digi Audio originally shipped with Mac OS 9.1 but can be upgraded to Mac OS X 10.4.1 .... we need to ascertain where the Mac is currently at, software wise.
Can you talk to the person who last used the Mac? From what you say, there could be a failed Logic Board and you've fitted a new drive so you need to tell me what format you chose for this new drive?
AFAIK, you need to Format the drive as Mac OS Extended (Journalled).
You may or may not have already read the following info, but here it is:
Mac os9 flashing question mark and face - how can i get past it?!?
Using Disk Utility to verify or repair disks
How to use and troubleshoot FireWire target disk mode
Your Mac won't start up in Mac OS X (Mac OS X 10.3.9 or earlier)