Alternate PowerMac G5 Installation Methods?

Hey, I have a PowerMac G5 lying around, with a blank HDD.
I have the original recovery discs, and disc one installs just fine, but disc two fails. When inspected, it looks as if it was left in some sort of alcohol solution and the data layer started to bubble up.
That said, because I own the discs and therefor the license to them, a retail edition of Leopard from any source is legally obtained, as the license for digital media is not constrained to the physical media it is stored on.
This is something I have spoken to lawyers about, as well as researched on my own, and there are court cases that have ruled in the favour of being able to reobtain a license.
So don't hurr too hard about where I got the replacement DMG. I'll post a photograph of the PowerMac and the discs if you doubt I really own them, but it's not piracy.
TonyMac ranted about that when I mentioned I downloaded a copy of ML already in ISO format with MultiBoot after finding I couldn't mount it in Windows after I already bought it.

Now, after I figured out that it was the disc that was bad and not something to do with the extra 6gb of RAM I added, I threw Leopard on a flashdrive using TransMac, but couldn't get it to boot.
After a bit of searching around, I found that it will only boot from Firewire, ODD, and HDD.

So near as I can see it, all my options cost money, which is something I wouldn't mind avoiding.
I can either get a dual layer DVD and burn it under Mavericks, get a Firewire/USB hub, get a Firewire HDD/flashdrive, or buy a new set of the OEM recovery CD's, which I don't know if they even sell.

Another option is to put a spare 40gb HDD I have lying around, restore the installation DMG to it, and then boot the PowerMac with it, but first of all, will OS X even burn the DMG to a HDD, and will it install from the HDD to another HDD?

If I can't use the HDD, or trick it into booting from USB, does anyone know of a powered external HDD caddy with buth USB3 and FW?

A buddy of mine has a different PowerMac G5, but no discs. Already tried there.
His drive died on him years ago, and he lost the discs and deemed the old hardware unworthy of a replacement drive.

Thanks for the help.

Using the HDD worked.

PowerPCs will not boot from USB drives or flash drives alas period. Have you tried booting after simply installing from Disc One only?

I am aware of that.
This is why I was having issues.

Yes, I had. It asks for Disc two.

I ripped the drive out (160gb Caviar Blue), threw it on my main desktop, formatted it so it wasn't bootable, and put it back.
Then I took my spare drive (A 500gb Barracuda), and used Disk Utility to restore the DMG to the drive.
Then I put it in and booted and loaded the installer and made for a very fast installation.

Also, when I was in the boot device manager, my mouse didn't work and the only keyboard key that seemed to do anything was enter.
Not sure what's up with that.
But now I need a DVI/HDMI adapter ($8 6' cable on Amazon) and a keyboard and mouse to use with it.
It's going on my home theater system until I take the case and transplant my main desktop inside and probably drop the PowerMac guts into my Tempest 410 Elite.
But that's a tale for a different forum.