How do i Install Win 7 to an External HD

I have iMac 27" 3ghz Intel core 2 duo and love it! I am also a gamer and despise the fact that gaming studios don't make enough games for Macs. So I've tried using Win XP on my mac via boot-camp by dual booting but was not satisfied and didn't like having windows software directly on my apple machine. I don't want to give up gaming entirely on computers so........
I would like to install Win 7 to my External HD (LACIE Rugged ALL-Terrain 250GB 5400 RPM 2.5" USB 2.0 / IEEE 1394a / 1394b External Hard Drive), but i have heard that Win 7 is a little tricky when trying to install it on a machine with multiple HD's using different Operating Systems. Im not quite sure what all the issues are, but if you know how to properly install Win 7 on to an external HD so i can dual boot from that HD to play windows based games than please help! =)

I've not tried it myself, but I've read that if you use a third-party EFI tool like "rEFIt" and you are willing to make a custom install disc (DVD), it is possible. Just do a little Google searching and you should find the same links I found that talk about doing this.
Another thing I have not tried, but should theoretically work would be to use a "boot from VHD" configuration, where you put the VHD on an external drive. I don't remember where I read about booting Windows 7 from a VHD, but I suspect it was on MSDN.

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