the problem isn't that it can't be outside of 8GB...
I quote LowEndMac:
If you have a hard drive over 8 GB in size <i>and</i> have more than one partition on it, the partition containing OS X <b>must</b> be within the first 8 GB of space or you will not be able to run OS X.
So... if you've got a large drive and it's one partition, there's no problem.
that's on...
iMac 233-333 (tray-loading), Power Macintosh G3 233-333 (Beige and All-in-one), PowerBook G3 Series (Wallstreet/MainStreet/PDQ 233, 250, 292MHz), G3 Series II (Wallstreet/PDQ 233, 266, 300MHz)