If I'm installing Mac OS/OS X from CD images, I've found that burning the install CD-Rs at 4x makes for much less frustration. The higher the CD write speed you use, typically the more error correction the CD-ROM drive has to do when you boot/read the disc. The disc may pass verification in your burning software, and may read fine on your modern burner, but on a "vintage" drive it will often read very slowly, freeze in the installer, display errors, or just fail to boot at all.
Also, is the PRAM battery in the Wallstreet holding a charge? The weird backlight behaviour sounds like what I experienced. I had to boot back into Mac OS 9.2.2 in order to turn it back on. I think part of the classic Mac OS boot sequence makes sure the backlight is set to a non-zero value. If I did a warm reboot into the OS X installer, all was good. If I did a totally cold boot (dead/no battery, dead/no PRAM battery) after having the power cord unplugged, no backlight again.