Windows 7: Installing W7 *to* a USB HDD or flash drive

I want to have a Windows 7 installation that can be booted from a hard disk in a USB caddy or a USB flash drive / SHDC card. So I am installing to a USB connected drive.

I have created a bootable USB flash drive with the Windows 7 install DVD contents on it, so I am in a position to install to the Netbook hosting the USB hard disk. I have also (for reference) created a VHD on a different Windows 7 machine and set it up to boot from that, on the internal HDD.

The Windows 7 installer will not install directly to a partition on my external HDD, because it is connected by USB or Firewire (err message "Windows cannot be installed to this disk"). I can't "just ignore" the warning, as suggested by some, as the Next button is inoperative.

If I create a virtual hard disk (VHD) on a partition on the external HDD I am again warned by the Installer that it can't be installed to the VHD as the "computer's hardware may not support booting to this disk". If I ignore the warning and press Next (only works for the VHD option) I am told "Setup was unable to create a new system partition....See the setup log files for more information"

I can at that stage use the Installer tools to Format the VHD etc.

So I'm stuck - where do I find the installer log files and how can I move forward to get a bootable installation on a USB connected drive ?

No moving forward here,

unless you're an extremely talented programmer...

Can't be done.

Microsoft says so...

Do Linux on a stick.

What is the intended purpose for this method? Use an eSATA housing.

P.S.
Thanks for the XP link ChuckR.

I'm certainly not making claims to be a talented anything, TBH !

Just found this guy who claims progress, with screenshot to match.

Objective is to run Windows 7 on a netbook with a small SSD drive. Only USB ports available.

He's launching a VM. Not the same thing. Requires the VM software on the host.

I don't see where realtebo says he's launching a VM, just launching Windows 7 from a VHD which is as you say not the same thing. Confused.

Windows Virtual Hard Disk | Imaging | Windows 7

thanks, downloading it now to watch.

FWIW I now have the USB stick booting into the Windows 7 boot manager from where it will run the Windows Memory Diagnostic OK, but the Windows boot option fails on "Windows failed to load because the NLS data is missing, or corrupt".

Good luck. You are duty bound to report your results, positive or negative.