Can I install Mac OS X Lion on an external FireWire800 drive?

Can I install Mac OS X Lion on an external FireWire drive? I have bought a Lion Thumb Drive. I'd like to install Lion on the FW drive and then boot from there. The FW drive is a brand-new LaCie D2 Quadra 2 TB drive that has FW 800, 400, USB, and esATA connectivity.  Can't find any manual describing how to do this. Any help appreciated. The more detail, the better. Thanks.

Yes, you can. When you run the installer you will get to a screen where you will see the default target drive, usually "Macintosh HD." Under the icon you will see a link to display other drives. Click on that so you will see the external drive you have connected. Select that then continue the installation.
For simplicity connect the drive using FW800.

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