Want to install Snow Leopard from a USB drive instead of the DVD?
Install OS X Snow Leopard from a USB flash drive | Maciverse. This article shows you how to accomplish this. Plus it has some helpful comments in case you get stuck. Nice work! I have done this as well and it works great. You can also use external Hard drives as the destination media. Probably any bootable external storage would work really, possibly even a NAS/SAN.

