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Your disk performance is going to suffer. Using USB for something that I/O intensive is going to be painful.
You might also need to get drive controller drivers for your external enclosure, assuming it's not detected automatically.
After installation, reconfigure your BIOS to boot from your usb media.
In our datacenter, many installations of operating systems are done via usb-cdrom, or via a usb floppy. So i don't see why you wouldn't be able to boot from a usb hard drive.
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