command prompt???
 

I reran SuperDuper to transfer everything from the old drive to the new. I installed the new drive and when I booted it up, it came up with some sort of a command prompt. In the upper left corner it says:
Nothing else displays. no "?" , no Apple logo etc...
What next?

Try:

reset-nvram
reset-all

(Return after each.) It should reboot after the "reset-all".

After I typed "reset-nvram", I got this:
Then I typed "reset-all". When it rebooted, I was back to the command prompt. I am thinking that maybe I should cut my losses and buy a more permanent HDD enclosure and just make the 40Gb an external USB drive???

Well, it certainly seems like the computer doesn't like the drive at all: perhaps you've mis-installed it? It it set to "cable select"?

No, It is set as a master. should it be cable select?

It definitely should for more recent Macs, so I'd give that a try. It might be that the drive isn't compatible with the controller at all... unfortunately, I'm not an expert on early (pre-OS X) Mac hardware.

I set the drive to CS and get the blinking "?" now.

OK. It seems to me that there's got to be a hardware-based problem here. Perhaps the OS needs to be in the first 8GB of the drive, and your partitions are reversed?

Well, I got it now :). When I originally partitioned the drive, I did set partition 1 for 8Gb. I repartitioned it and backed it down to 7.5Gb and it flew right thru. Thanks for all your help.

Hey, great! Congrats!