Sounds like you may have an upgrade disc instead of a standalone installation disc. I upgraded from 9.2.2 to 10.3.9 on an old iBook G3 using a Panther disc I bought off eBay that looked like this:
Does your Panther disc look like that? The install disc needs to be the full retail version as your iMac originally came with an OS 8.x install disc so don't try using a model specific installation disc from a later released Mac as it won't work.
Make sure you have the
Firmware Update 1.2 installed.
Your G3 400MHz or Bondi Blue iMac natively supports up to Mac OS 10.3.9, but it is possible to install Tiger using
XPostFacto but you might have some performance issues with any OS above Panther.
You have enough installed RAM to support Tiger if you wish to give it a go.