You're gonna need something indistrial-strength to do what you want. When you make a backup of OS X with Apple's Backup or Carbon Copy Cloner, one way or the other, you're going to have to re-install Mac OS X from the install CDs before you start restoring stuff. There's no utility out there that will allow you to restore an OS X system to a system that doesn't have OS X (or some operating system) already installed on it.
If you want something that will do a comprehensive backup, I would suggest Retrospect available from
http://www.dantz.com.
Otherwise, I would simply get a .Mac account and use Apple's own Backup software to back up the essentials of your system. If you legally obtained the software you have installed on your hard drive, it's extremely simple to just re-install the program from the application's install CD and simply back up the preferences that you need for that program -- it only takes a few minutes for each program, sometimes less than that.
Apple's Backup will span DVDs or CDs, meaning you can back up as much stuff as you like and Backup will just prompt you to put in a new CD or DVD when it fills the first up... and it'll continue until all the stuff is backed up.
CarbonCopyCloner will not span CDs, DVDs or hard drives. It's a utility to make a
clone of your system, so, obviously, you cannot clone a 10GB system to a 4GB drive. You gotta have equal or more space, as macavenger said.
If you do choose to use CarbonCopyCloner, you'll first need to make a disk image and clone your hard drive to that disk image, then put the disk image somewhere you can access it. Then you'll need more than one hard drive or a hard drive that has been partitioned into at least two partitions: one large enough for a basic install of OS X, and one large enough to accomodate your "cloned" hard drive. Then, you can install Mac OS X on the basic install partition, and use CarbonCopyCloner to clone your old system from the disk image to the other partition.
I would suggest backing up the essentials and reloading.