Install Windows 7 FROM External Hard Drive to laptop

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I understand that it is possible to install Windows 7 from an external hard
drive to a laptop that does not have a functioning CD Drive. However,

1. Is it as simple as copying the Windows 7 Installation CD over to the
external hard drive and setting the BIOS to boot from the external hard drive.
2. Can the install files be located on any partition of the External Hard
Drive?

This looks useful, haven't tried it myself though:
http://www.intowindows.com/how-to-in...working-guide/

And another alternative is to get a USB CD/DVD drive.

Some are powered over the USB cable and don't need a separate power
supply, and some are pretty compact and light. Some are both light and
USB powered :-)

I have an LG GP08 LU10, quite compact and light, which I have used to
good effect. It is happy with USB power, and it even burns LightScribe
labels.
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We discuss Windows 7 in this newsgroup too.
It is your choice if you read & reply to Windows 7 posts.
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