Windows 7: Installing Win7 on (not from) a Flash Drive

Now that flash drives are available in sizes up to 128 GB it seems feasible to install Windows directly on such a drive, except that the installer setup does not recognize flash drives. I understand that it is possible to flip the "removable" bit in some manufacturers' flash drives which might make the setup program recognize it. The Lexar utility Bootit includes this flip function. Does anyone have experience with this? From my experimentation the Bootit flip doesn't work on SanDisk, HP, or PNY flash drives. It apparently works on Lexar drives. I would appreciate hearing any further information on this subject. Also there may be copyright issues involved since MS has gone to the trouble of making flash drives invisible to the setup program.
One workaround would be to install Windows 7 to a hard drive and then clone it to the flash, but I am interested in a direct install as an intellectual curiosity.
---Ed