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I've never heard of a way to do it. There is a target disk mode, but it should only mount the iMac's hard drive. I've never heard of a way to mount another computer's CD-ROM drive without it being on an OS X server, and even then, its not a bootable device for the client computer.
Actually, when modern Apple laptops are in Firewire target disk mode, the machine's hard drive mounts, but it also acts as an external optical drive. Unfortunately, that won't help in this case--OS X cannot be installed on this machine.