
What, you're selling your entire imac just because the drive wont start
I would understand it if it were an old imac. But me thinks it would be a lot less hassle to just replace the hard drive with a bigger one (or an ssd, would increase performance).
I saw nowhere in the thread (point me to it if I'm wrong) that you partitioned or erased the drive from disc utilities, when you booted from the install DVD. (so not the normal disc utilities on your mac, but the one on the install DVD). Did you try it? Cause if you didn't it would be daft to sell and buy a hole new mac, if just a "reset" of the hard drive would have done it.
But ofcourse it's your call, do what ever you want. This is just how I think about it.