HD failure, USB 2.0 ? and restore help

[drindiana]

While all a bit spooky with timing I just purchased the full version of SuperDuper, an external USB drive and completed smart updating on my Powerbook G4 1.67 15" (OS X 10.4.8) notebook when the hard drive failed (clicks only no whirring). While happy that I have a full backup I am little perplexed and hoping for some advice as I await for my new HD to be delivered.
Whilst trying an Apple hardware check (useless IMHO, as it said everything was OK and it clearly was not) and using Disk Utility I noted that my internal HD did not show up but my USB 2.0 drive did. Whilst aware of your sticky (& manual advice) on the fact USB drives cannot be start up disks I tried it and it did not work However I had seen this

http://docs.info.apple.com/article.html?artnum=58430

Does this mean it is possible for USB 2.0 external drives to be startup disks? Or am I misreading it. If it is are you aware of how we could make it work consistently.

In any case could you confirm that if I use my Apple OS X DVD to be my startup disc I could restore back to my new HD when installed through the disc utility program?

thanks