Updating OSX 10.3.5 on another mac

I have an Imac thats running OS X 10.2.5 and I recently just bought a ibook that came with 10.3.5..I was wondering if I could update my iMac to 10.3.5 with no problems. Such as, my iMac's HD being cleared or deleted of all my files. Any help would be appreciated.

Also How would I back up all my important files? Can I just copy them to My external HD then reload them back on computers HD, eventually?

thanks

If No one wants to answer becasue they think it is wrong to update two Macs with one software disc...I can understand. But I really want to upgrade my iMac so I can use the latest DVD Studio Pro and some other Programs that require OS X 10.3.5 or later. I was also think of just upgrading to Tiger for my iMac which is 1.25ghz, 768mb ram, OS X 10.2.8. I do alot of Video editing currently and My computer has been flawless for a solid year and I don't want to jepordize any of mr files by updating...But I really want to Use DVD STUDIO PRO 3 or later,, and also plan updating to the latest FCP. Any help would be appreciated.

THANKS

i dont know if you could upgrade it as im guessin that you would be using the disc that came with your iBook yea?

I think that you would have to back up everything then do a clean install

Not knowing what media you have. Here is what I see. You will most likely need to get a full OS install media. I believe the media that came with the iBook is a set of restore disks. They are used to restore your system back to the factory defaults.