As far as I know you will also find it difficult to install and boot
Vista on an external USB drive, you can ask the folks in the
vista.general or the vista.installation_setup groups and see what they
have to say about it. It doesn't matter that you are trying to do it
with a dual/multi-boot setup or a single installation, booting Windows
on a USB drive is not supported, there are problems with the USB stack
initialization when you try to boot to the drive and there are problems
with USB bus rediscovery/reinitialization if you hotplug a USB device
while you are using Windows, Windows will probably crash if you hotplug
a USB device. You can read here:
http://blogs.msdn.com/oldnewthing/archive/2004/04/15/113811.aspx Other
than that you will have to scour the net and see what you can find, as I
said earlier, some claim to have done it, you will have to try their
recipe and see where takes you.
Most of the reports that I have read all mention that the end product is
buggy. This is a project for tinkerers, don't rely on this for your
stable working Windows installation. Installing Windows on an external
USB drive is not just a matter of changing the boot order in the BIOS
then sticking your Windows CD/DVD in the drive and telling it to install
to the USB drive! It takes modifications to the way Windows initializes
the USB stack. Some talk about that here:
http://channel9.msdn.com/ShowPost.aspx?PostID=174858 Finally, there is
a lot of mention about booting Windows on USB sticks, that is not the
same as installing and booting a full Windows installation on an
external USB drive, what people refer to when talking about Windows on
USB sticks is usually a PE version of Windows.
John