OK. Of course, Leopard can boot from case-sensitive HFS+. However, it is a bad idea to use it unless you share files with other users of case-sensitive file systems exclusively. Since 1984, Mac files have been case-insensitive. Be advised that some of your mission-critical applications may not support case-sensitivity. If you store files from a case-insensitive FS on case-sensitive volume, then you will have surprises--and not the good kind.
OK. Of course, Leopard can boot from case-sensitive HFS+. However, it is a bad idea to use it unless you share files with other users of case-sensitive file systems exclusively.
Good, I've heard that earlier versions of OSX don't work right with an HFSX root filesystem. The only person I'm sharing files with is me; my backup disks exclusively use HFSX. Does the Leopard install disk let you select HFSX?
By the way, I didn't invent the term "HFSX", Apple utilities like hdiutil use it.
I believe that it will install without any trickery, but Apple strongly discorages the use of Case-Sensitive HFS for boot volumes. There will be things that break (and Apple is not going to mark them to be fixed).
I don't believe that FileVault is going to like HFSX volumes, but you might be able to swap out the disk image.
But do you really have anything that needs case-sensitive file systems? Or are you just fixed on having it for no specific reasons. In most cases it is far better to use case-sensitive disk images for the very few things that need it (or update to a version of the software that gets away from the dependency).