I have a server that is a few years old, with only a CD-ROM available. I want to put FC8 on it, but can't find CD images of the entire distro (which would be insane anyhow at 3GB+). Is it possible to use a LiveCD to tap into a Windows XP machine on the local network sharing the FC8 DVD to do the install?

Alternately, can I copy the files from the DVD onto an NTFS formatted USB external hard drive or SDHC card, boot from a LiveCD and install that way?

As I want to install a lot of packages, I really don't want to be dependent on the online repositories.

There are several different installation methods with different boot media other then the DVD.
You can boot from a min CD. live CD or USB drive using the hard drive or network installation method. With the hard drive installation method the DVD ISO file must be on a ext2/3 or FAT32 partition. I do not know if the installer can read the ISO file from a USB drive. The local network installation method can be via HTTP, NFS or FTP. Your windows PC must be running the server of choice.

hmm...this could get interesting.

If I set up with a min CD, can I set up my own repository on my Fedora 7 box on the network, and tell yum to go there first? Is it hard to set up a repository for a newer distro on an older one?

Should be possible.

Awesome, thanks, I'll give it a shot.