Update - I fear it might be a mainboard issue after all.

• I tried a total swap of changeable parts - known working hard drive, 400mhz CPU, RAM, airport card.
  Can start an installation from CD, but it sees no destination drive.
  When I try to force a boot from CD, it goes back to the installation process.
  In system profiler, it does not see any ATA drive, even though the known working HD is connected.
  When I startup with no CD in the drive, I get a folder icon that flashes between a ? mark and the Apple happy face icon.
  I do get chime at startup.
  I have tried the reset button, plugging and unplugging the backup battery, switching RAM around, etc.

Does all of the above indicate that the main board is fried, probably with regard to the ATA controlling function?

I guess I can still use for parts...transplanting a main board may be possible, but I would need to find that part for cheap...