The things which you need are :

PearPC 0.3.1http://easynews.dl.sourceforge.net/sourceforge/pearpc/pearpc-0.3.1-win32-sdl-jitc.zip

3GB Hard Drive image
http://www.pearpc.net/files/macosx_3gb.rar

6GB Hard Drive image
http://www.pearpc.net/files/macosx_6gb.rar

PearPC Control Panel
http://www.compudav.com/PPCCP/SetupPPCCP.zip

Mac OS X 10.3.4 CD 1
Once you have downloaded all the things from above then place all the files into on folder and name it something like "PearPC." I like to use a separate hard drive to do this or you might want to use a separate partition, because this will be very big!!!

Inside the PearPC folder, extract the "pearpc-0.3.1-win32-sdl-jitc.zip". Then cut the contents of that folder and place them into your main PearPC folder. Delete that "pearpc-0.3.1-win32-sdl-jitc" folder, because you don't need it anymore.

If you just want to install Mac OS X and want to try it out, then use the 3GB pre-formatted hard drive image. If you want to install Mac OS X as well as some programs, then use the 6GB pre-formatted hard drive image. Make sure you have at least 10-15GB of free hard drive space on your partition or hard drive. After you choose to extract which ever pre-formatted hard drive image, you can then delete it's original .rar archive, because you don't need it anymore.

Make sure your Mac OS X 10.3.4 CD 1.iso is in the PearPC folder. When all is done, your PearPC folder should look like this:

Now, you can extract the "SetupPPCCP.zip" to a temp directory and install the PearPC Control Panel to your Program Files directory on your C drive. After it's installed, you should make a shortcut of the program on your desktop for faster access.

Double-click on the PearPC Control Panel shortcut to run the program. Choose FILE, NEW CONFIGURATION FILE.

Press Continue.

For the Location of PearPC, click on the Browse button and point to the ppc.exe inside the PearPC folder that you made on your hard drive. The picture above will differ than the directory that you chose. I put my PearPC folder on C, because I did this inside VMware Workstation (a PC emulator). Also, choose the macosx.img file that you extracted to your PearPC folder (the 3GB or 6GB hard drive image that you decided to use). Next, decide how much memory you want to give your PearPC. I have 768MB RAM installed on my Host PC. I also made sure I don't have anything running in the background that I don't need (example: anti-virus, firewall, etc. - disconnect from the internet if you disable these!). Press Continue once these are setup.

Video Mode should be set not too big, otherwise a lot of RAM will be needed to render PearPC. 800x600x32 is fine. Video Redraw Rate should be set to 10, and this setting will give you decent frame rate for your mouse cursor inside of PearPC. Leave the CPU at G3. Jot down the Full-screen Key Combo, because when you want to make PearPC go into full-screen mode, you won't forget how! Keep in mind, once in full-screen mode, you can get out of it by pressing Alt+Return again. Mouse Grab Combo, leave at F12. This means when your mouse is inside of PearPC and you want to get it out, press F12 on your keyboard to do so. Don't bother enabling Networking because this is a waste of time. Leave the Boot Method to "Select." In the Mach Args window, add -v in the box as shown above. Leave the NVRAM just like it is. Press Continue when done.

Name the Config File to "Mac OS X." Location of the .cfg file should be saved directly inside your PearPC folder. Just press the Browse button to find the PearPC folder and save it as "Mac OSX." Click Finish when your done.

Now, close PearPC Control Panel and Defrag the drive or partition where your PearPC folder is, because it will be very fragmented so far do to the pre-formatted hard drive image that you extracted. Then open up PearPC Control Panel again. You're almost there!

Now, click on the Browse button and locate your Mac OS X 10.3.4 CD 1.iso (this should be inside your PearPC folder. Check the box for the "CD-ROM device is installed" option. You see the green arrow above in the screenshot next to the "?", press that button to start PearPC!

 

Your screen should look like this if every step above was done correctly. Click your mouse cursor inside the PearPC window. You're mouse cursor will disappear. That's ok. Press the number "1" on your keyboard. You might have to use the numbers above the letters on your keyboard. We obviously want to boot from your Mac OS X 10.3.4 CD1.iso. So, make sure there is a "1" and then hit Enter on your keyboard.

This is what you should get. Followed by this will be a Microsoft DOS-like window with text. It's normal, just be patient and let it do it's thing. Once all that is done, your screen should then look like this:

You can now press Alt+Enter on your keyboard to make it go into full-screen mode. After this screen is done, a Choose Your Language screen will appear. Choose a Custom Install when installing Mac OS X. Because we're only using the first CD (and that's all you really need), we will not be installing stuff like iTunes, language packs, printer drivers, etc. Just pick the bare minimum (required) stuff to install. You can install iTunes later as well as the Mac OS X update.

Now, this might take several hours, depending on your Host PC's CPU and RAM. Be patient and don't do anything in the background!

Once the installation process completes, PearPC quits abruptly. This is normal. Close PearPC Control Panel and reboot your Host PC (your computer).

Go back into PearPC and change the option from "CD-ROM device is enabled" to "Hard drive is installed" and browse for your 3GB or 6GB.img file inside your PearPC folder. Make sure the box is checked and press the green button to start PearPC.

Finish the Mac OS X installation process. When the Mac OS X Setup Assistant asks you for information on connecting to the internet, tell it that you are not ready to connect at this time. Once the installation process is all done, you can then delete the Mac OS X 10.3.4.iso file, because you won't need it anymore.