I was thinking about doing this until I saw how involved it was. My Mac Mini has 160 GB of storage, which is not even close to enough. I am confident I would succeed in the upgrade, but considering the drive is a 2.5 inch drive anyway, the cost to benefit ratio just isn’t there. I think instead I’ll look for some good network attached storage.
I just set up Time Machine to backup to a network drive. It was surprisingly easy to do. As simple as creating a disk image in disk utility and telling time machine where to find it. I followed this tutorial.
The part that got me was naming the image. I missed that part and didn’t put my MAC address as the name: ComputerName_MACAddress.sparesebundle
Now I just have to get ghost to do the same thing for my Vista machine.