OK...good that it didn't go to Open Firmware.
I have been thinking about this, and I have actually overlooked an obvious thing and misguided you a bit. It seems that the hard drive either doesn't have an OS on it, or it is heavily corrupted, so that is why you cannot boot into single user mode (Command-S).
You are going to have to find some install discs to get OS X installed. If you have a Mac OS X install disc inserted, you will be able to Option boot or hold the C key down to boot from the disc. That will then allow you to install OS X.
When you try to enter singe user mode, are you pressing Command-S immediately after power on and before hearing the chime, then holding them until you see the black loading screen?
The videos you will see on YouTube about restoring a Mac to factory specs using single user mode without the install discs assume that you have a working version of Mac OS X installed on a working hard drive.
C