I swap the CDROM drive out and retest. CD/DVD drives also need an occasional lens cleaning so I always try that first. If the CD media is not perfect we have to replace that as well.
There is no magic except what Macfixit writes about reseting the PRAM or such on these.
Bob
I put the install cd's into my ibookg3 800mhz hold down c button and I hear the cd spin see the apple logo and below the clock thing spinning and then it goes to the circle with a slash through it and wont load the install cd's. I got a hardware test cd off ebay but it was warped so I dont have a working test cd. Whats up with this thing?

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