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OK: you should be able to pull down the File menu in disk utility and mount the sparse image from the CD, as long as it's reasonably recent (10.3.7 or later). But, that won't get your further than you've already gone.
So, if it's hanging loading the login screen, we need to figure out what's failing. Try doing a "Safe Boot" (shift down during power on). Does that work?
If not, try a verbose boot (Cmd-Opt-v during power on). What error do you see when it's hanging, or what's the last thing that loads?
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--Dave Nanian
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