I've managed to solve the problem I was blogging about earlier.
I started out by forcing TimeMachine to do a backup and since I wasn't sure I'd succeed
in restoring my data using it, I did a gtar backup of all user directories too.
Once the backups were done I booted the Leopard install DVD, started DiskUtility, and reformatted the disk as HFS, Journalling and Case Insensitive. After that I started TimeMachine and choose the restore option. It immediately reformatted my disk to match the backup, and that wasn't what I wanted.
So I reformatted the disk again and then choose to do an install from scratch. When the installation completed and the system rebooted, the migration assistant asked if I would like to mograte old data, and I picked the option to restore from the last TimeMachine backup.
This time is didn't do anything with my file system and all files & settings were restored - and I could start the Photoshop CS3 installation and get it installed!
I don't know how it would have handled a conflict, i.e. restoring foo and Foo, since I wrote a Perl script to make sure that I didn't have any conflicts.
