Is a pain in the ass.
First of all, a minimum install of OS X is still around 30 Meg or so, depending on how many of the Darwin Util's you transfer ( I usually drag all of them ). For now, until Apple can sort out everything, you'll just want to create a bare-bones OS 9 disk. I keep one on my iPod for troubleshooting. There isn't a single good Disc Utility on OS X yet ( if you have used Drive 10, you'll know what I mean ). Instead, use a good copy of Norton 6 and Disk Warrior 2.1 for all Disc needs. They won't mess with X.