This HOWTO goes over two ways to use a hard disk with your LRP system. The first method replaces the boot floppy with a small MSDOS partition. This give you the space to load all those LRP packages you have been drooling over and makes your system boot much faster, but LRP still runs entirely out of the ramdisk once it is booted. The second method is for mounting a hard disk partition to be used by LRP when it is running. You might want to do this to store web pages, run a small e-mail server, or other functions that really require a fair amount of online storage to run.
Both methods fundamentally make your system less secure than booting from a write protected floppy, but this might be an acceptable trade off for you. I would suggest keeping your primary internet access point a simple router that boots from a floppy, but using LRP for a small web/ftp/dns/mail server is probably more secure for most folks than trying to strip down one of the standard distributions (which load up your disk with a few hundred megs of junk hackers can use to exploit your system), and has the benefit of not having to learn the quirks of a new distribution if you are already running LRP.
you can use the two methods together, so you could boot off a hard disk, and then mount a (separate) partition that might contain web data, or be a storage area for a mail server.