I meant to post this last time you brought this up, but there's an easier, albeit a little slower (although not a LOT slower if you have an old CD drive): Just hook it to your desktop mac via Appletalk/ printer cable (iMac or similar, you are SOL of course).
Or not too slow at all if one uses the Ethernet port on the 540.
Share the installer CD using the desktop CD drive, connect to the desktop machine via appletalk from the laptop, run the installer- and you will get the nice smaller model-specific system installed on your laptop. It takes a little while, but not unworkable, certainly seems as fast as a 1X or 2X external CD (I've done both).
-- Clark Martin Redwood City, CA, USA Macintosh / Internet Consulting
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