You probably need to repartition the disk with APM to use it as a startup disk on the G5.
Both PPC and Intel Macs can boot FireWire drives, but the drive is supposed to have a different partitioning scheme for each type of system. PPC systems can only boot from a volume on a disk that has "APM" partitioning. Intel systems only fully support booting from a volume on a disk that has "GUID" partitioning.
Some people argue that APM is supported by (most?) Intel Macs, but the problem is that a volume on an APM disk is only selectable in the Option-boot chooser, not the Startup Disk preference pane. Also, some releases of Mac OS X will refuse to install on a volume on an APM disk if the install is attempted on an Intel machine. So, it usually just better to use GUID for drives with boot volumes for Intel Macs.
To use a different partitioning scheme, goto the disk's Partition tab in Disk Utility and click the Options… button. Using Disk Utility to change partition schemes erases the contents of the disk.
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