OK - well after a good session of dismantling systems, building up new ones (including finding some skins in better condition), I seem to have gotten somewhere and got a good upgrade into the bargain.
It seems as though the mainboard / tray / CPU assembly in the one I was working on has an issue. I moved that board into a different chassis, and had the exact same problem. So I put that aside and found an R12K 300MHz board and put that into the original chassis and, lo and behold, I was able to boot into the IRIX installer with no problems! Also don't need the internal optical drive connected it seems and am able to boot the installer from the external optical drive no problems.
So - all I can say is THANK GOD. Frustrating too as no matter what drives I was going through, the board was bad all along. And on the plus side I got an upgrade to an R12K
Thanks for all the help and advice - it was much appreciated.