That's right: do NOT use a Sandbox for Tiger -> Leopard updates.
What I always do is back up and try an upgrade. If there's a problem, it's easy enough to clean install/migrate or restore and wait for the next version.
You will likely be able to Smart Update an existing Sandbox, but erasing won't hurt, since it's smaller than a full backup anyway (and likely to copy nearly everything again)...
Linking Documents probably would work -- but don't try to share too much of your Home folder, especially between different major OS versions.
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--Dave Nanian
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