To add a little to the advice already given: if the boot drive fills up on a Unix computer (which includes OS X), the computer will not start up normally and you'll be faced with booting into single-user mode and trying to free up disc space using the command line interface, a distinctly non-trivial task. Don't ignore the disk full nearly full warning!
How much free space is the minimum free space you want to keep on th boot drive is a surprisingly contentious issue, with some preferring the rule of thumb of keeping 15% or so of the internal boot HD free and others arguing for specific numbers. Both measures are valid in practice. You really want to keep at least 5 GB free space available on the boot HD in case you ever need to do an
Archive and Install.
If you've saved downloaded .dmg files after installing software from the mounted disc images onto your hard drive, delete the .dmg files.
Among the disc space required by OS X is space for memory swap files. The number and sizes of swap files depends on the amount of real RAM on the computer, the amount of RAM needed by the programs and files used, and the time since the last restart; swap files can take up to about 5 GB in theory (although 2 GB is a more real-world limit). Restarting the computer will free the swap space back down to the default of one 64 MB swap file. That can give you enough working free space to more comfortably search the hard drive for more unneeded files to delete.
Whatsize is a handy utility for finding large files to potentially delete to free up disk space. Don't delete anything of which you're not certain! Old .dmg and temp files are prime candidates for deletion.
The advice already given about an external Firewire hard drive will help prevent the boot drive from filling up in the future. You can moce user data to the external HD. Refer to:
iTunes: Moving your iTunes Music folder
iPhoto: How to move the iPhoto Library Folder