Is there some reason you have not tried creating and using a bootable USB flash drive for installing FROM?
If you do not have a USB flash drive, can you get one - buy or borrow one?
When installing Windows it is best to:
- Have only 1 HD connected - the HD where Windows is being installed TO
- Have the minimum number of peripherals connected during the install - usually only the keyboard and mouse
- In this case you would also need the USB flash drive you are installing Windows FROM
With the approach you are trying to use installing FROM the USB HD, you risk losing data on the external USB HD.
I'm no expert, gregrocker is the best installation expert.
I think there was a misunderstanding in using the USB HD for installing Windows FROM / TO.
I would wait for further advice from Greg before continuing with the approach you are trying to use.
The link i gave you in post #3 has all the instructions for creating and installing from a USB flash drive.