Once you have completed the above steps, I would advise that you replace the older version of "Disk Utility" that was included on the restore DVDs, with the updated version, which you will find on a running Intel Mac.
The difference is, that there is a bug in the version of "Disk Utility" that is run from DVD, in the setup and installation environment - ver. 10.5.6(198.12) - which DOES NOT allow you to drag and drop disks/volumes/images in the "restore" area. Go to /Applications/Utilities on a working Intel Mac system, and drag "Disk Utility.app" into /Applications/Utilities on the partition "Mac OS X Restore Disc 2" that you have just finished building.
The newer version - ver. 10.5.8(198.16) doesn't have this bug, so simply overwrite the older version with the newer one. Both are universal binary, incidentally!. Trust me when I say that this will prevent MANY headaches, when stuck with a corrupted Mac, that you need to revive with an archived DMG of a working system.