Guide from Apple.com - http://support.apple.com/kb/HT1352
You can use the Open Firmware Password
application to set up low-level
password protection with Mac OS X
v10.1 and later.
Apple Open Firmware Update 4.1.7 and
later provide the groundwork for
password protecting computers at a low
level (Open Firmware Password
Protection). This feature is off by
default. Apple provides the Open
Firmware Password utility for use only
with Mac OS X v10.1 and later. Apple
does not endorse or provide technical
support for this feature when used
with earlier versions of Mac OS or
with any third-party software
utilities.
Intel-based Macintosh computers can be
protected by firmware passwords as
well. The firmware in an Intel-based
computer uses Extensible Firmware
Interface (EFI) technology—Open
Firmware is used in computers that use
PowerPC processors.
Warning: Attempts to use firmware in a
manner that is not explicitly endorsed
by Apple may damage your computer's
logic board. Any repairs that are
necessary because of this damage will
not be covered under the terms of the
Apple One-Year Limited Warranty,
AppleCare Protection Plan, or other
AppleCare agreement.
How to enable the Open Firmware
Password On any computer capable of
firmware password protection
(including Intel-based Macintosh
computers), follow these steps:
For Mac OS X v10.1 to v10.3.9,
download and install the Open Firmware
Password application, which you can
get here.
For Mac OS X v10.4.x, you must use the
updated version that can be copied
from the software installation disc
(located at /Applications/Utilities/
on the disc).
For Mac OS X v10.5.x, start from the Leopard Install DVD and choose Firmware Password
Utility from the Utilities menu, then skip to step 5.
Open the Open Firmware Password application.
Click the icon to authenticate. Enter an administrator username and password when prompted.
Click Change.
Click to select the checkbox for "Require password to change Open Firmware settings", as shown below.

Type your password in the Password and Verify fields.
Click OK. A confirmation appears.
Click lock icon to prevent further changes.
Choose Quit from the application menu.