No, that will not work as those are read-only devices. Windows is designed
to run from a FAT32 or NTFS partitioned hard drive, and must be able to
write to the registry, swap file, and many other locations, as would your
applications.
No, it won't work. However, if your BIOS supports booting from an
external device (USB Hard Drive, etc.) it is possible to install XP to
the external device and boot from it.
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