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I have successfully installed and ran Windows 7 from my Ext. HDD. Thanks for all the help I appreciate it very much. I do have other problems however, posted in their respective places on the forums. Check them out and see if you can help out.
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no idea if this was posted but:
why would you install and OS on an external HDD that is a mistake, if you want 2 OS then partition your computers HDD and use your external for storage
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I have always wondered this too, but I have never had the time to research this.