That's what I'm suggesting. You have the OS X install DVD (and your Disk Warrior DVD) already, Disk Warrior is installed on the SD! copy, and so's OS X. As long as you partition your external drive properly (there are many different explanations of this on the forums, so search a bit -- you want GUID for Intel Macs and Apple Partition Map for Power PC), you should be fine.
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--Dave Nanian
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