Can I install OSX on a cracked screen macbook using target disk mode? I'm planning to sell my old macbook that has a cracked screen, but I do want it to go with a fresh install. Obviously, I can't make a new installation using an external monitor since the external monitor won't work when booted from cd. 

So my question is if it's possible to target (firewire cable and target disk mode) my old macbook's drive from my new mac when doing a fresh installation.

thanks in advance,
Yes I have tried this with both 10.5 and 10.6 and it works fine. 
Or you can try the Remote Install Mac OS X feature in the utilities folder.