Hi
So I've been looking around LFS for a while now, and was wondering:
1.) Can I install LFS on PPC (Powermac G4)
2.) How do you guys update software?

Thanks
Chris

Yes, if you use Cross Linux from Scratch --> http://trac.cross-lfs.org/ and then you would use CBLFS --> http://cblfs.cross-lfs.org/index.php/Main_Page
The same way we install it in the first place except we use the new release. Generally once I install a package on my day-to-day CLFS partition I leave it at that version unless it needs to be upgraded later to satisfy a dependency. paco is a nice tool to help you keep track of packages that you have installed.

I got an idea..why can't I just boot a live cd that can run on PPC and then install LFS, cause essentially LFS is just packages for you to install.

Also about updating, using the new realease seems abit old fashioned, can't you make LFS update itself like you could in Gentoo or FreeBSD?

Uhhhhh, no. LFS and CLFS are actually books that contains the instructions for building those packages correctly so your machine works when you're done. LFS is focused on the ix86 architecture. CLFS addresses other architectures as well as ix86.
Gentoo never updated itself when I used it, always had to make a conscience decision to run emerge. You could install Portage on an LFS system, but what's the point? If you don't want to deal with the packages yourself, then just install Gentoo in the first place and save yourself the hassle. It won't be long before you have a Gentoo system anyway...and that's assuming everything isn't subtly (or completely) broken the first time you emerge -NvD world.

If you want to do LFS or CLFS, then do it. If you don't, then don't. LFS and CLFS work for those of us that use them, but they're not for distro hoppers or people that update every package that comes across an rss feed.