OS X :: Xcode Not Working Fine / Safari Crashes While Browsing

I got this iBook about 6 months ago for free from my sister. I love it, but recently, I have had the worst time with Mac. I wanted to install Xcode for my Mac, and I installed it. The only problem is that it said it couldn't run due to some bogus error... Later that night, I was just browsing the internet and my browser (Safari) crashed. I went to open it again and it just kept crashing. Then, when I went to switch to Firefox, it also crashed. I tried to go into my HDD or Applications folder and it crashed.

Everything would crash as soon as I tried to open. I tried rebooting. I was stuck at they grey screen with an apple and spinning wheel for half an hour, then gave up. I took out my system restore disks and checked the hardware first. Everything was intact. Then I tried Disk Utility from the System Restore disk and all it said was that it couldn't repair the volume. So I remembered that you could reinstall the operating system without reinstalling user settings. I ran it. It was the worst mistake I could make. It turns out that I got 10.3.3 System Restore disks and a separate 10.4 disk. When I tried reinstalling the Tiger disk, it just kept shooting it back out at me. I couldn't even open the internet as all of my applications were written for Tiger. I asked a friend to do some research for me and she found that the disk included was 'part of a hardware bundle' and was not bootable or even readable by the computer. I ask you, if it's not bootable or readable, why even incude it?! So now I'm trying to find a decent deal on a bootable disk on eBay. If anybody knows anything that might help, it would be aprreciated.