Your probable system limitations are:
Pre-Installed MacOS: 9.2.2 & X 10.2.1 Maximum MacOS: X 10.4.11
Sounds like you got a system upgrade disk rather than a full installation disk.
There are three different models of your machine, see them here. See which machine you have here and tell us which one you have: :
Here is a picture of an original gray system installation disk: http://www.welovemacs.com/6913638a.html
Here is a picture of a retail installation disk: