I would just restore the user folders. Not applications and settings.
In every case I have seen using the time machine restore applications and settings from PPC to Intel ended with some buggy programs.
Personally I prefer just manually transferring files. Usually by pulling the hard drive and using an adapter. File sharing over Ethernet works fine too it is just slower and more work to setup.
My preferred order of setup is. Which I have found over a great deal of new setups and reinstalls to provide the most reliable finished product.
1. Set system and network settings (temporarily disabling any energy saver until setup is complete)
2. Install drivers.
3. Install all updates to the OS.
4. Install all major software and browser add ons (flash, shockwave, air, reader, downloadthemall, flash block, java, adblock plus)
5. Create user accounts and transfer all files.
6. Disable all automatic updates and any startup programs that don't need to load when booting. I disable the automatic updates so they don't unexpectedly slow down the computer. I check manually every month or so.