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To restore a full installation from TM, you need an installer disc. It's possible to use a USB, but you need to install the OS on that from the disc in the first place (not necesarily on the same computer).
The USB would need to be a minimum of 8GB; the installation DVD is Dual Layer.
Your understanding of Time Machine seems to be greatly lacking.
View Pondid's excellent articles, especially on how TM works.
TM is not bootable, full stop.
Firewire Target Disc mode; no other firewire devices may be connected to either computer during this procedure. You can't run a TM backup remotely anyway, it has to be from a booted volume.
UNIX forum; https://discussions.apple.com/community/mac_os/mac_os_x_technologies
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