You should also confirm whether the returned HDD needs jumpering as master or sole drive in the absence of its little ATAPI mate. You were fortunate to find a junked iMac with no worse problem than Quizzical Floppy. Keep in mind that the operative indication by QF is that the system 'cannot find' a valid (blest) System Folder on an accessible startup volume. If your externally set-up HDD worked externally, it is likely that the iMac cannot 'see' it now, which has to be the result of a cabling, power or controller fault.
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So I doublechecked all my connections and everything seems tight.
How do I know if the drive needs jumpering? Do iMacs require this?
I tried jumpering it to master and booting it regularly, and also holding down option, but neither worked... I couldn't find any sole drive jumper schematics for Samsung's SV series drives.
I was thinking... everymac says the indigo/snow 500 shipped with OS9.1, but the disc I used was a universal 9.2.1.
Could that be a problem?