You don't need to reformat the drive unless you are having problems with the drive and/or your Leopard system. You can simply run the SL installer which will automatically upgrade Leopard as well as retain all your files where they are. To do this successfully you need to:
1.
Repair the Hard Drive and Permissions
Boot from the Snow Leopard Installer disc. After the installer loads select your language and click on the Continue button. When the menu bar appears select Disk Utility from the Utilities menu. After DU loads select your hard drive entry (mfgr.'s ID and drive size) from the the left side list. In the DU status area you will see an entry for the S.M.A.R.T. status of the hard drive. If it does not say "Verified" then the hard drive is failing or failed. (SMART status is not reported on external Firewire or USB drives.) If the drive is "Verified" then select your OS X volume from the list on the left (sub-entry below the drive entry,) click on the First Aid tab, then click on the Repair Disk button. If DU reports any errors that have been fixed, then re-run Repair Disk until no errors are reported. If no errors are reported click on the Repair Permissions button. Wait until the operation completes.
If DU reports errors it cannot fix, then you will need Disk Warrior and/or Tech Tool Pro to repair the drive. If you don't have either of them or if neither of them can fix the drive, then you will need to reformat the drive and reinstall OS X.
2.
Clone using Restore Option of Disk Utility
3.
Proceed with the Snow Leopard installation.
If you are intent on erasing the drive before installing Snow Leopard then do the following after you have cloned your existing system per the above Steps 1 and 2.
Drive Preparation
1. Boot from Snow Leopard Installer Disc. After the installer loads select your language and click on the
Continue button. When the menu bar appears select Disk Utility from the Utilities menu.
2. After DU loads select your hard drive (this is the entry with the mfgr.'s ID and size) from the left side list. Note the SMART status of the drive in DU's status area. If it does not say "Verified" then the drive is failing or has failed and will need replacing.
SMART info will not be reported on external drives. Otherwise, click on the
Partition tab in the DU main window.
3. Under the Volume Scheme heading set the number of partitions from the drop down menu to one. Set the format type to Mac OS Extended (Journaled.) Click on the
Options button, set the partition scheme to GUID (for Intel Macs) or APM (for PPC Macs) then click on the
OK button. Click on the
Partition button and wait until the process has completed.
4. Quit DU and return to the installer. Complete the OS X installation.