Installing software to a firewire portable drive

Hello all -
has anyone ever installed software onto a portable hard drive? I have run out of hard disk space on my macbook pro and i need to install final cut and the adobe photoshop suite. If anyone has been successful, please let me know of any problems/hickups that you have encountered.
thanks in advance!

I don't see what "latency" issues there would be that would be any different on another hard drive. An external FW800 drive is not noticeably slower than the internal hard drive. If you aren't happy with the installation on an external drive you can always install it on the internal drive.

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