Can I install XP Pro on an external (Seagate) HDD

I was wondering if I can install Windows XP on an external hard drive, since my laptop has Vista and a 160 GB hard drive and putting in another one will void my warrenty (Sager 9260, it has 3 HDD capacity). Is this possible? I was thinking of creating a partition in the external HDD and wanted to be able to boot from that partition when it is plugged in (but still have the option of booting vista when it is plugged in too).

Thanks if anyone can help, not sure if this is possible though.
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More about install external seagate
  1. Yes, it is possible BUT only if your PC supports booting from USB2.
  2. it is possible, as ive done it before with xp x64. though by default, the ability to is disabled (bsod stop errors on first reboot, missing infs/drivers, etc). heres a tutorial on how to (re) enable installing win xp over a usb drive:
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