Is it possible to install Windows onto an external FireWire or USB drive?
Due to limitations of the Windows boot process it is not possible to boot Windows from an external Firewire or USB drive. It is possible to boot Linux from USB like live-CDs (eg. Knoppix) but if you do a search of this topic on the web you will find that this is not the case for Windows although some limited WinPE applications (e.g. Winternals ERD Commander) do boot from a CD.