I had the very same problem but I forget to change the 0 to 1.
But you have it correct. Dont know. Maybe wrong spell of img file? did you gave him the current position of file?
here is my config file and Iam installing right now. May it helps
# PearPC Configuration File
#
# Resolution
#
# 0: 640x480x8 (indexed)
# 1: 640x480x15
# 2: 640x480x32
# 3: 800x600x8 (indexed)
# 4: 800x600x15
# 5: 800x600x32
# 6: 1024x768x8 (indexed)
# 7: 1024x768x15
# 8: 1024x768x32
#
# The indexed modes are unsupported.
#
# default: 4
ppc_start_resolution = 4
#
# Redraw interval (in ms)
# must be between 1 and 999
#
# If you set this higher, PearPC will spend less time doing redraws (and so run faster)
# but feel less responsive. You should adjust this to your computer speed and personal
# preference.
#
redraw_interval_msec = 200
#
# Loader
#
#
# Boot method
# this can be
# 1. "auto", prom will boot the first bootable partition found (default)
# 2. "select", prom will show you a list of bootable partitions
# 3. "force", prom will load and boot the local file prom_loadfile
#
prom_bootmethod = "select"
# Example of how to use "force":
#prom_bootmethod = "force"
#prom_loadfile = "test/yaboot"
#prom_env_bootpath = "disk"
#
# bootargs: don't change unless you know what you are doing
# machargs: set to "-v" to get a verbose startup
#
#prom_env_bootargs = ""
prom_env_machargs = "-v"
#
# This is needed if you want to boot Mac OS X
#
prom_driver_graphic = "video.x"
# This will adjust the position of the initial page table (don't change)
#page_table_pa = 104857600
#
# CPU Config
#
# Processor Version Register
# Defaults to 0x00088302
# Only change if you know want you are doing
#
#cpu_pvr = 0x00088302
#
# Main memory (default 128 MiB)
# must be >= 64 MiB
#
#memory_size=0x8000000
#
# IO Devices
#
#
# PCI IDE Config
#
# Drive type will be set according to file extension:
# .img: Harddisk (filesize must be multiple of 516096)
# .iso: CD-Rom
# Or you can override this by specifying the type via
# pci_ide0_master_type / pci_ide0_slave_type
pci_ide0_master_installed = 1
pci_ide0_master_image = "e:\pearpc\pantherimage.img"
#pci_ide0_master_type = "hd"
pci_ide0_slave_installed = 1
#pci_ide0_slave_image = "e:\pearpc\macosx1.nrg"
pci_ide0_slave_image = "e:\pearpc\macosx1.nrg"
#pci_ide0_slave_image = "/dev/cdrom"
pci_ide0_slave_type = "cdrom"
#
# Network (unavailable on windows)
#
#pci_3c90x_installed = 0
#pci_3c90x_mac = "de:ad:ca:fe:12:34"
#
# USB
#
pci_usb_installed = 1
#
# NVRAM
#
nvram_file = "nvram"
Launch the Disk configuration utility from the Installer menu, select the HDD and tell it to erase (using default options). Close the Disk Conf. Util and the installer should see your HDD now.
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