Hey,

Congrats on your "new" iMac! ;-)

I could be wrong, but I seem to recall that those machines seemed to
need a OS X partition no bigger than 8GB in order to boot from it.
That should explain the fact that everything is OK, but the iMac can't
boot.

The OS X 8GB partition should also be the top partition, IIRC. Try it,
it may do the trick.

Best of luck,

Felix

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