Can't re-install system without losing everything on the HD

I am trying to save 3 Final Cut Projects on my Dual 1.8 ghz G5. Here's what happened. The unit has been working fine until yesterday when I turned it on and got an Apple screen with a turning gear and nothing else. I have another system on my second internal drive so I booted from there. Here's what I tried :
disk utility said disk OK but would not repair permissions gave a exit error.
disk warrior rebuilt it same problem with disk utility and Apple Screen
I reloaded the system OS X 10.5 big mistake, It created a previous folder but failed to install. Now if I run install it wants to erase the disk, there is no archive option. I can see the data on the damaged main drive but do not know how to copy it to a clean install. Or put a new system on the damaged disk.
My rescue plan is to clone the damaged main drive and then using the clone, try to move the applications and data from the clone to the clean drive. Will this work? What system folders need to be moved too?
Any suggestions or help would be appreciated. Naturally the back up I have with time machine is so old it does not have the 3 projects I need to save.

From the OS on the second HD, copy the FCP projects to it. If it's a complete clone of the borked one, then after doing that, erase the borked one, and restore the good one to it.

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