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To quote Dave N. when I asked a similar version of the same question awhile ago:
"You'd only need to use Disk utility to properly partition the drive (as "GUID") and format it (as "Mac OS Extended (Journaled)").
Once that's done, just clone from your external back to your new internal and you should be good to go. SD! will copy all the system files, etc. You will end up will a full-functioning 500GB internal with 10.4 and all your apps already installed and ready to roll.
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