I have no hard drive with a IIci-bootable OS installed on it now. And apparently the 80MB drive that came in the IIci is dead because the IIci wouldn't boot from it and my LC III/Drive Setup wont recognize it.

Any advice would be appreciated.

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Just a thought - you say in your sig that you have an LC III. An LC III will run any version of Mac OS between 7.1 and 7.6.1, which will also run on a IIci, provided you have at least 4 megs of RAM. (7.6.1 will boot in 4 megs with a minimum set of extensions, or better yet, no extensions) Worth trying at least, anyway, provided you don't mind popping open the LC III to borrow its HDD.