You don't HAVE to- when you start the installer on the Leopard disk you can do an "Archive and Install" type of install which will keep a lot of stuff (including most of the Users folder) in place, and will keep other stuff it is not sure of in a separate folder.
If you want a totally clean install, then you would use the option at the start of installation to "Erase and Install" which will format your drive first, cleaning off everything on it. For the most problem free installation of all this is the choice to make.
You could also choose "Upgrade", but that is the weakest choice for safety anyway, as it just updates the components of the existing OS installation and can turn out to have difficulties.
Always make sure you have a FULL backup of your existing data before using any of the choices unless you have nothing on the drive that you want to save.