Installing Mac OSX Leopard from an external drive issue

Hello
I have a macbook which is all messed up and currently has no operating system whatsoever. I got a Leopard.dmg installation file, but I do not have a dual layer DVD, so I decided to install it from my external USB Hard drive. I formatted it to HFS+ (the OSX file system) and extracted the .dmg onto that partition.
When I start the Macbook with the drive plugged in and while holding the option button, it shows the external drive as "EFI Boot" and after I select it it asks to restart the computer.

So, my question is: How can I make a bootable image of leopard on my external HDD, while I'm on windows?

*Edit* I tried to run the EFI Boot thing, and i got yet another error: Unable to find driver for this platform: \"ACPI" ...

Thank you very much.

External Hardrive for Installation

here is an option gwhiz dot wordpress dot com/2006/09/2dotdotdotpard-from-dmg/
as you can see from the url its installing leopard from dmg, catch is you have to have 3 partitions. but my friend did it and it worked. 10.4, external usb, and partitioned the hd to make a 15gb partition to install.

Well, I actually got it to work lately however i did not installed vista ultimate on it instead. As soon as i managed to start from a dvd i formated the hard drive to get rid of all this mess. Now that my Macbook is running Vista pretty smoothly i think i will leave it that way..

but thanks anyway