Did you guys see this one? "I've worked out a work-around for the 8GB limit for system volumes on older Macintoshes. I'm writing this on a Beige G3 with a 27G system partition, and I'm confident that it won't be rendered unbootable by system updates or disk activity (the reason for the 8GB limit in the first place). Most of the credit goes to Ryan Remple and his XPostFacto tool for installing OS X on older, unsupported Macs -- the 'trick' relies on using XPF's 'Helper Disk' feature. I haven't tried it, but I think it should also work on Macintoshes that are affected by the 8GB limitation but wouldn't otherwise need XPostFacto........... .........................." <http://www.macosxhints.com/article.php?story=20040604012923908&mode=print>
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