1) Put in Leopard Disk in DVD Drive
2) Start Disk Utility
3) In Disk Utility Select New Image
4) The New Image Dialog will pop up. Leave everything else and set Volume Size to "8.0 GB (DVD+R DL)"
5) Select the Leopard DVD on the side pane and Click Restore
6) Set the source as the Leopard DVD and Destination as the Newly Created Disk Image
7) Wait...............it takes a long time
8) After it is done, eject the DVD. We dont need it anymore
9) Goto the Leopard DVD which is inside the Image
Inorder to see the hidden files we need to enable showing of all files, type the following in Terminal
defaults write com.apple.finder AppleShowAllFiles True
This will show all hidden files.
10) Now, go into to the DMG, you should see some new stuff in there
11) Navigate to /Volumes/Mac OS X Install DVD/System/Installation/CDIS/
12) Right-Click on "Mac OS X Installer" and Click on Show Package Contents
13) In the New Window goto Contents/Resources and DELETE the "CheckForOSX" File
14) Now just rename the DMG Volume to Mac OS X Install DVD using the Get Info Dialog
15) Burn this image or restore it onto your iPod
Thats it. What you have now is a Full Install DVD. I restored it onto my iPod and just installed Leopard yesterday. A Clean Install, no upgrades for me. Tiger came with my Mac so I am perfectly within my Legal Rights to do this. Also I own the Upgrade Disc, so no issues there either.