Dual partitions is one way, or one partition and an OS switcher. I can't remember the name of the switcher program, but you can happily fir 7.6.1 in 200-300MB, and laptop hard drives are so easy to come by, and under 10GB they cost next to nothing!
_________________
iMac G5, Powerbook G3/333, Beige G3MT, PM 6200CD, RS/6000