[dnanian]

That certainly looks like trouble on the source volume, but it could be that it's repairable.

Please boot from your Tiger install DVD (or the system disk that came with the Mac) and run Disk Utility from the Installer menu (the bold one that says "Installer" next to the Apple menu at the top of the screen -- note that it might say "Utilities" on yoru copy). Then, use the First Aid tab to repair the internal drive, using the buttons on the right (NOT Repair Permissions on the left). Repeat until no problems are found, then boot back to the drive and try again.