Hi there,
to partion the drive you need to use Disk Utility...so you need a 'working' boot cd
Do you have an Apple CD (it's Silver!) with the "Apple Hardware Diagonstic Tools" this should be able to tell you if there is a problem with either the cd drive or the hard drive...
If the disk that you have is the one that came with the Mac then the only reasons that it won't boot the Mac are :-- That the CD is dirty/scratched or that the Laser in the cd drive has gone bump !
Even if the hard drive was dead the original OS cd would boot the Mac...
What happens if you unplug the drive and then try booting with the CD ?
regards
Ric