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You can use Carbon Copy Cloner to make a full image of your drive.
if you do an upgrade to Leopard, you will not need to reinstall.
 
I think that when you install Leopard you have this 2 options:
- Upgrade Installation: will only add the Leopar new stuff.
- Archive and Install: will create a copy of yor old system in a folder (taking some space) and install Leopard

Both will maintain all you users and their stuff.

Be sure to backup your HDD before doing anything.
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AZ-Offroad
 
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