Is it possible to install windows XP using external hard drive?

Just upgraded all my hardware and windows needs reinstalling to reconfigure.
Trouble is my existing dvd drives are IDE and my new motherboard has no IDE port.
I have a copy of windows on an external hard drive. Is it possible to plug it into a USB port and use the external to install XP onto the internal? I'd rather not have to buy a Sata DVD drive.

Asus P8Z68-v-lx (with a fancy BIOS)
i7 2700K
4 x 4GB 1600mhz Vengeance
Seagate HD501LJ
Seagate HD400LJ
Genesis 500GB External
Windows XP Pro 64bit
2 x now useless IDE DVDRW
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More about install windows external hard drive
  1. Yes, just Google install xp from usb drive. That USB drive can either be a hard drive or a flash drive.
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