Archive and Install (I think it is called something new under SL) is fine - you just end up with an "Old System" folder, a bit like the OS9 Clean Install.
So long as you have the SL install disk it should be fine and pretty safe. Other than possible firmware issues, I wonder if its version confusion could also break the "save user settings" option.
Also of course the old Safe Mode, fsck is worth a try.



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