[dnanian]

If you can fit the image onto a DVD-R, and you have a second DVD drive to read from, yes. Remember, though, that since you're booting from the DVD drive (the Panther install disc), you can't remove the DVD from the primary drive...

Note that you can also store the DMG on an accessible web server and access it over the network (even personal web sharing will work).

Give this a try, of course, before you rely on it in production. Try booting from the Panther install CD as I indicated, and run Disk Utility from there. Check out the options available from the Restore tab... and best of luck!