It is a good idea to place a partition called "Mac OS X Install DVD" on an external hard drive for several reasons. The foremost is for DVD challenged Macs. Perhaps your Superdrive or Combo Drive is broken? It provides a handy method of fixing disk permissions, updating Firmware passwords, and whatever else you can do off the Install, without the actual DVD. I will show you briefly how to set up the external partition correctly for the OS X Leopard Install, make an image of the Install Disc, restore that image to the external partition, and finally how to boot from an external firewire hard drive.
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