I started up my G4 PowerMac in Target Disk Mode, hooked it up with Firewire to the iMac (FW400 to 800 cable), and had at the time an external Firewire hard disk plugged into the G4. Both the volumes inside the G4 and the external hard disk showed up on the iMac's desktop; furthermore, the iPod, which was plugged into the external hard disk at the end of the chain also showed up fully functional.
Yay firewire. Cheers, A.