Loading SCO Unix

My hard drive failed and when I try to load SCO I get the following error: setup_OSpart: pt_init_disk() failed. It looks like it is not seeing the new hard drive, because I get: .instscript: /dev/hd00: cannot open.
I am loading 3.0 from 3.5 floppies. Tried to load 5.0.4, but can't get the CD drive to be recognized.

Without knowing the exact hardware you are using, the following is only a guess.
Neither of those operating systems support SATA drives in native mode. My guess is that when you replaced the drive, the CMOS setting for the disk controller is now native mode instead of compatible.

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In addition, the maximum disk size for 5.0.4 is only 8gb. I would recommend re-installing the system using Virtual Box,
https://wdb1.sco.com/kb/showta?taid=118463&qid=919756846&sid=1377207550&pgnum=1

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The computer is a IBM 300XL with a western digital caviar 35100 Hard Drive.
The drive is identical to the one being replaced. I think the problem is the hard drive is not formated for unix. I tried using fdisk when I get the Boot: prompt, but doesn't work. So not sure how to format the disk for Unix. Last time I did this was 15 years ago.

You may need a boot diskette for the 5.0.4 cd. I don't remember if the cd is bootable.
If you are getting to the boot prompt then you only need to press enter to start the installation process which will run fdisk and divvy.

I tried, but the CD drive is not recognized.
I also have 3.0 disks that I started to load, but after N2 disk asks to put in the N1 disk again, I get the blue screen with setup_OSpart: pt_init_disk() failed.

When you try 5.0.4, are you booting from the Cd or do you have a boot diskette?
Can you run the cmos setup and confirm that the hard drive the primary device on the primary port?
Check the jumpers on the disk to see if they are set the same as the failed disk, assuming you still have it.

Jumpers are the same as the failed disk. Last time I did this I used the 3.0 disks first then upgrade to 5.0.4 with the CD drive. I tried 5.0.4 from the CD drive and it doesn't recognize it. I start to get hexadecimal addresses on the screen.

Download 5.0.6 from here https://www.tachytelic.net/sco-openserver-installation-isos/
Your 5.0.4 license will work, and your system will boot from the cd,